O-I Glass (OI) is facing pressure from a soft glass volume outlook that is limiting the company's organic growth, RBC Capital Markets said in a note Wednesday.
The note also pointed to price and cost pressures from competitor oversupply and energy headwinds in Europe, and a less-than-expected deleveraging given a reduced Ebitda.
While the company plans to close several European furnaces, the note said regional pricing should be challenged until more supply comes offline. The report also said glass beverage consumption could remain soft through 2027.
The note said free cash flow will likely be negative in 2026
and barely breakeven in 2027.
"We await volume/price and FCF inflection to become more bullish," it said. RBC downgraded the stock to sector perform from outperform and cut its price target to $8 from $10.
Price: $6.92, Change: $+0.17, Percent Change: +2.52%