Ardagh Metal: Wells Fargo maintains Equal-Weight, PT down to $4.5 from $5.

Ardagh Metal: Wells Fargo maintains Equal-Weight, PT down to $4.5 from $5.

Wells Fargo analyst Gabe Hajde has revised the firm's price target for Ardagh Metal Packaging (AMBP) from $5 to $4.50, while maintaining an Equal Weight rating on the shares. The adjustment comes after the company delivered a Q2 earnings beat, exceeding the Street's expectations. However, the revised guidance for Q4 suggests a soft quarter, raising questions about the company's fundamentals.

The Q2 earnings report showed a 15% increase in revenues to $1.455 billion, with net income rising to $5 million. Despite the positive revenue growth, the net margin remained low at 0.08%, and the return on equity was negative at 112.58% [3]. The company anticipates adjusted EBITDA between $705-$725 million for the full year, reflecting improved performance and favorable currency movements.

Hajde's price target reduction follows a series of analyst upgrades earlier this year. Morgan Stanley, UBS, and Citigroup all raised their target prices for AMBP, with Morgan Stanley increasing it to $4.10, UBS to $4.50, and Citigroup to $5.00. However, the consensus rating remains "Hold," with an average price target of $4.52 [2].

The recent price drop of 16.38% on Thursday, July 2, following the Q2 earnings report, suggests that investors are cautious about the company's future prospects. The stock closed at $3.88, down from $4.78 in June. Ardagh Metal Packaging's parent firm recently entered a recapitalization deal with major stakeholders, which may provide some financial stability [4].

Institutional investors have shown interest in AMBP, with SBI Securities, Pallas Capital Advisors, and others increasing their holdings in the first and second quarters. However, the company's negative return on equity and low net margin raise concerns about its profitability and long-term growth prospects.

References:
[1] https://www.tipranks.com/news/the-fly/ardagh-metal-packaging-price-target-lowered-to-4-50-from-5-at-wells-fargo-thefly
[2] https://www.marketbeat.com/instant-alerts/wells-fargo-company-forecasts-strong-price-appreciation-for-ardagh-metal-packaging-nyseambp-stock-2025-07-18/
[3] https://finance.yahoo.com/news/ardagh-metal-ambp-drops-16-092514122.html
[4] https://www.marketscreener.com/news/ardagh-metal-packaging-s-parent-firm-signs-recapitalization-deal-with-largest-stakeholders-ce7c5fd8dd8bf020