Owens-Illinois (OI) Stock Forecast & Price Target

O-I Glass demonstrated a notable growth trajectory, with volumes increasing approximately 4.4% year-over-year in the first quarter, driven by robust demand in the Americas and Europe. Demand dynamics indicate a positive inflection following a period of destocking, pointing to a strong recovery in both regions. Additionally, the company reported consistent volume strength in January and February, aligning with their Investor Day forecast of a 5% growth, suggesting ongoing momentum moving forward.

O-I Glass is experiencing a decline in volume, with a reduction of approximately 1-2% and weaker performance in Europe, particularly in export-heavy markets such as wine and spirits, which comprise about 40% of its European production. The company faces significant downside risks, including challenges in managing input costs, potential market share loss to alternative packaging materials, and execution issues related to its MAGMA production process. Additionally, O-I's underfunded pension obligations and exposure to international markets further contribute to a negative outlook on the stock, compounded by seasonal slowdown and maintenance downtime in the fourth quarter.