NEW YORK (TheStreet) -- Shares of Bemis Co. (BMS) are up 3.74% to $42.70 after BMO Capital Markets upgraded the Wisconsin-based packaging company to "outperform" and raised its price target to $47 from $39.
"Our upgrade is driven by a variety of external and internal factors: margins are poised to expand, [there is] cautious optimism around recent leadership changes, and expectations are low," analysts said.
"With a modest relative valuation, 2.6% dividend yield, strong balance sheet (2.2x levered), multiple margin opportunities, and fresh leadership, there are lots of reasons to own BMS at current levels," analysts added.
Separately, TheStreet Ratings team rates BEMIS CO INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BEMIS CO INC (BMS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."