Ahead of the Bell: Silgan Holding downgraded

Since last December, when Goldman Sachs analyst Richard Skidmore upgraded Silgan stock to "Buy," it has sharply outperformed the Standard & Poor's 500 index, he said.

In the last 52 weeks, shares have ranged from $44.13 to $58.55. The stock closed Monday down 3.9 percent at $55.26.

"We are downgrading Silgan stock ... as we see better risk/reward elsewhere in our coverage group, specifically, in containerboard sensitive stocks," he wrote in a note, adding that he also removed it from the "Americas Buy List."

"We view the valuation for Silgan shares to be compelling, albeit less so compared to other stocks within our coverage group. We see 16 percent upside to our 12-month discounted cash flow based $64 price target."

At the same time, the analyst said he likes the stock long-term for its U.S. market share, ability to boost earnings through acquisitions, cost cutting and strong balance sheet.