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Narrow-moat Aptar had a steady second quarter, and we are maintaining our $125 fair value estimate. While revenue surpassed expectations with somewhat surprising 16% top-line growth, about 6% of this growth was currency-related, and price adjustments contributed several percentage points as well. We see shares as fairly valued in light of the 7% decline in the stock price following earnings.
Headquartered in Charles Lake, Illinois, AptarGroup is a leading global supplier of dispensing systems such as aerosol valves, pumps, and closures to the consumer goods and pharmaceutical markets. With the bulk of its annual net sales coming from Europe (50% of sales) and the United States (33%), Aptar aims to increase its presence in Asia (10%) and Latin America (7%). Aptar's pharmaceutical division generates roughly one third of group sales but over two thirds of group profits.
