O-I Glass jumps after Citi upgrades to 'buy' on recovery prospects

Shares of glass bottles and jars maker O-I Glass rose 6.9% to $6.8 in premarket trading after Citigroup raised its rating on the stock to "buy" from "neutral".

Citigroup said it is betting on a recovery in the second half of the year, adding that O-I's estimates for volume recovery in the second half are conservative and that pricing headwinds are expected to ease in Europe.

The brokerage also said the company could benefit from a lower cost position and increased focus on high-value customers. It added that it is possible O-I could ultimately be viewed as a takeout target.

Four of ten brokerages rate the stock "buy" or higher, four rate it "hold" and two rate it "sell". The median price target is $9.

As of the previous close, the stock was down 56.8% year to date.