O-I shares fell to a new year low 23 Oct after an analyst cut his price target & earnings estimates on the US glassmaker, citing an increasingly valuable dollar. Citi Investment Research analyst Timothy Thein reduced his 4Q earnings-per-share estimate to US$0.45 from US$0.55 & also lowered his 2009 earnings-per-share estimate by US$0.35 to US$4.15 to "reflect a greater currency headwind." The analyst cut his share price target to US$42 from US$55. However, Mr.Thein reiterated a "Buy" rating on the stock. "After a challenging 2y period of energy & raw material cost inflation 2005-07, we see opportunity for significant earnings per share improvement in 2008 & beyond as the company realizes greater benefits from a successful integration of the BSN assets, working capital improvement, plus aggressive reduction in debt, which we believe is the company's No.1 priority.
