Reuse > Recycle – Closing the loop on a cheap stock with long-term potentialNovember 21, 2019
In ESG investing, the sweet spot of idea generation includes the confluence of companies in transition, exhibiting noticeable improvement in sustainability characteristics (e.g. ESG momentum) and depressed valuation (e.g. opportunity for multiple expansion and / or earnings upside).
Herein, we explore the case for Owens-Illinois (OI), considering the following:
- Valuation scenarios based on adjusting assumed terminal growth for environmental factors
- The drivers of OI’s ESG momentum
- The implication of regulatory action on plastic and carbon
Lifecycle Impacts of Products and Services