) to underweight from equal-weight.
Analyst Scott Davis says decelerating food sales have impacted packagers and are the greatest risk for BMS. He says the slowing growth highlights increased competition; and as price pressure grows, the company's returns will likely erode. Reinvestment risk includes the belief the company may have a tough time identifing and acquiring suitable targets at attractive valuations, he says. He notes the company is a small player in pressure sensitive material business, and appears to be losing share to larger players.
He cut his EPS estimates from $3.00 to $2.95 for 2002 and from $3.30 to $3.15 for 2003. He has a $50 price target.