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Karachi: Pakistan Aluminium Beverages Can Ltd (PABC) has had its stock rating downgraded to “Underperform” following a significant stock price increase. The target price for December 2025 has been set at Rs100, indicating a potential 19% decline.
According to a statement by JS Global, the anticipated drop in earnings for the calendar year 2025 and efforts to reduce debt on the balance sheet are expected to limit any expansion of the company’s valuation multiples, even in a scenario of monetary easing.
Despite a robust cash position, with a net cash balance of Rs8.4 billion as of September 2024, PABC could see positive movement if there are announcements of capital expenditure or diversification plans, along with the resumption of cash payouts. However, the imposition of an infrastructure cess by the Khyber Pakhtunkhwa government poses a risk to the company’s exports to Afghanistan and Central Asian states.
The post PABC Stock Downgraded Amid Price Surge Concerns appeared first on Pakistan Business News.