O-I Glass (OI) Gains Momentum Under Turnaround Plan, RBC Maintains $16 Target

O-I Glass Inc. (NYSE:OI) is one of the 20 undervalued momentum stocks that are taking off. RBC Capital’s Arun Vishwanathan recently reaffirmed an Outperform rating on O-I Glass (NYSE: OI), maintaining a price target of $16. His positive stance comes after investor meetings with CFO John Haudrich and IR head Chris Manuel in Boston.

The firm continues to report good progress under its “Fit-to-Win” transformation strategy (initiated in 2024), which remains in its early phase. This multi-year plan (spanning three to five years) is aimed at improving operational performance and positioning the business for more consistent earnings growth. According to Vishwanathan, the initial results are encouraging and could set the stage for performance at the higher end of management’s long-term guidance.

O-I Glass (OI) Gains Momentum Under Turnaround Plan, RBC Maintains $16 Target

A factory floor with industrial line machinery operating, producing glass containers.

While the broader demand backdrop still shows some volatility, largely due to inflation-driven consumer behavior, the analyst noted that O-I has so far delivered solid execution. Specifically, volume trends and price/cost performance are tracking in line or slightly ahead of expectations.

Looking ahead, RBC sees potential for significant upside if the company achieves its goals, as the successful execution of the turnaround could help O-I generate stronger free cash flow and reduce its leverage. Over time, this could support valuation multiple expansion and strengthen the company’s investment case.

O-I Glass Inc. (NYSE:OI) is one of the world’s leading manufacturers of glass containers, with 69 glass manufacturing plants located in 19 countries.

While we acknowledge the potential of OI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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