UBS downgraded O-I Glass to Neutral from Buy and slashed its price target to a Street-low $6 from $11, sending the shares down as much as 5% before closing 0.9% lower. The downgrade centers on Europe, which UBS analyst Joshua Spector called "the main issue" after first-half 2026 EBIT in the region plunged to $6M from $158M a year earlier. Spector said the company is being severely affected by the spike in energy costs tied to the Iran conflict, and also faces weak competitiveness in Europe, two furnace outages, and lower cost savings targets that limit upside. He estimated EBITDA for 2026, 2027, and 2028 at 3% below, 2% below, and 1% above consensus, respectively, and noted volumes have declined for the last three years by an average 7%, with an additional 3%-5% modeled this year. Each percentage point of volume loss represents a $40M-$45M drop in pre-tax earnings, so a 2% volume decline next year would wipe out the modeled $100M cost savings benefit. O-I Glass shares have already plunged more than 60% year to date and are on track for their worst annual performance since 2000.
O-I Glass IncUBS downgraded O-I Glass to Neutral and slashed its price target to a Street-low $6 from $11.
