Berry Global Group rated as Overweight at J.P. Morgan on acquisition
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Berry Global Group (NYSE:BERY) on Monday was rated Overweight by analysts at financial-services firm J.P. Morgan whose investment rating was suspended because of securities regulations on investment banks that advise on mergers and acquisitions.
Berry (BERY) agreed to be acquired by packaging maker Amcor (NYSE:AMCR) in an all-stock transaction that will Amcor (AMCR) owning 63% of the new company and Berry (BERY) owning the remainder. J.P. Morgan set a price target of $76 a share on Berry (BERY).
“The current price of Amcor is $10.50 a share and, at a 7.25-to-1 exchange ratio, the theoretical price of Berry would be $76,” Jeffrey Zekauskas, analyst at J.P. Morgan, said in a Nov. 25 report. “In addition, we expect Berry to pay at least three dividends totaling $0.93 per share before the likely close of the transaction by the end of 1H:25, leading to a total return of about 8.5% in a 7-month period of time or about a 15% annualized return.”
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