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Glass bottle maker Owens-Illinois shares rising

Post Time:Dec 10,2008Classify:Company NewsView:411

Shares of glass bottle maker Owens-Illinois Inc. are likely to rise on favorable European labor negotiations, strong free cash flow and currently negative investor sentiment, an analyst wrote Tuesday.

Citi Investment Research analyst Timothy Thein, who reiterated his "Buy" rating on the stock and $42 price target, said the stock has been trading near the low end of its historic range.

It also has a robust free cash flow, a key metric that gauges a company's ability to generate cash after maintaining or expanding its assets.

In addition, Thein said the Perrysburg, Ohio-based company's sale of its plastics assets has significantly improved its balance sheet.

The company aims to shut three more furnaces in Western Europe, or about 1 percent of total European capacity. Other glass container makers in that region are expected to follow Owens-Illinois' lead.

In midday trading, shares rose 90 cents, or 4.5 percent, to $20.73. In the last 52 weeks, the stock has ranged from $15.20 to $60.60.

Source: Associated PressAuthor: shangyi

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