O-I Glass, Inc. (NYSE:OI) hosted its 2021 Investor Day via virtual format yesterday. Since the last investor day in 2018, the company has focused on having a more agile operating network, shifting its mix away from declining categories, derisking legacy liabilities, and deleveraging.

Now growth appears to be the driver of value creation and the company is betting on its MAGMA technology going forward. As a result, free cash flow and deleveraging are expected to be limited over the next three years.

At roughly 4x leverage currently, analysts at Deutsche Bank argue that debt reduction should remain a priority, especially considering growth in glass packaging has typically proved elusive. However, growth versus cash generation is a fine line to manage.

Overall, the brokerage maintains its Hold rating as it believes the company remains somewhat of a show-me story with MAGMA being implemented, but acknowledges the improvements the company has already made to have a more flexible operating structure.