On Friday, BMO Capital Markets adjusted its outlook on shares of CCL Industries Inc (TSX:CCLb). (CCL/B:CN) (OTC: CCDBF), a global leader in specialty label and packaging solutions. The firm raised the price target to C$93.00 from the previous C$90.00, while maintaining an Outperform rating on the stock.
The upgrade comes after CCL Industries reported third-quarter results for 2024, which showed year-over-year growth across all business segments. The company's Avery and Checkpoint segments, in particular, performed better than expected.
CCL Industries' management highlighted during the earnings call that the fourth quarter presents a challenging comparison for its label and packaging segment. However, they noted that October's performance exceeded expectations.
The analysis by BMO Capital Markets reflects a detailed look at the company's various segments. The CCL label is expected to face tough comparisons in the fourth quarter, but the CCL Design segment is anticipated to continue its recovery.
Sequential improvement is forecasted for CCL Secure. The Avery segment is projected to remain stable, while Checkpoint is seen positively with RFID growth set to continue. Innovia is also expected to show positive performance, driven by demand for label materials and savings from a plant closure.
In light of these insights, BMO Capital has increased its target price for CCL Industries shares to C$93 and reiterated its Outperform rating, signaling confidence in the company's ongoing performance and future prospects.
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