On Jul 5, 2014, we issued an updated research report on
). The global provider of consumer product dispensing systems
remains committed to cost containment and investing in
AptarGroup's strategic objectives mainly include investment in
equipment and acquisitions that will contribute to growth. In 2012,
AptarGroup acquired Stelmi Group, which marked AptarGroup's foray
into a new area of primary packaging components used in the
injectable drug delivery market, while broadening its product
portfolio and customer reach. So far, the business has performed
well and is expected to continue being accretive to earnings in the
future. AptarGroup's $26 million investment in capacity expansion
at Stelmi in 2014 will also strengthen the growth profile of its
In Dec 2013, AptarGroup acquired a 20% stake in Bapco Closures for
approximately $5 million. In addition, AptarGroup secured an
exclusive global license for Bapco's innovative closure sealing
technology that provides package integrity and tamper evidence.
This global license along with Bapco Closures acquisition will give
AptarGroup a better foothold in the market.
AptarGroup will also benefit from the targeted savings of $10
million to $12 million on an annualized basis from its
restructuring plan in Europe which was substantially completed by
2013 end. Rightsizing its footprint should augment returns over the
long term and also help to boost growth in Europe.
AptarGroup reported record results for first-quarter 2014,
following which it expects earnings in the range of $0.78 to $0.83
per share for the second quarter of 2014. The company expects
demand for innovative dispensing solutions to drive growth.
However, the emerging market currency environment is expected to
remain challenging in the near term. Moreover, AptarGroup's
earnings will be negatively impacted by volatile raw material
prices, increased competition and economic uncertainty.
AptarGroup currently carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some better-ranked stocks in the same industry include
Graphic Packaging Holding Company
Sonoco Products Co.
). All of these stocks have a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
MEADWESTVACO CP (MWV): Free Stock Analysis
SONOCO PRODUCTS (SON): Free Stock Analysis
APTARGROUP INC (ATR): Free Stock Analysis
GRAPHIC PKG HLD (GPK): Free Stock Analysis
To read this article on Zacks.com click here.