Deutsche Bank considers the proposed acquisition of Bemis positive and believes it will generate long-term value. The combined entity will become the global leader in consumer packaging.
Transaction and implementation costs of US$340m will be funded by capital expenditure in working capital synergies. Deutsche Bank retains a Buy rating and increases the target by 18% to $19.
Sector: Materials.
Target price is $19.00.Current Price is $16.50. Difference: $2.50 – (brackets indicate current price is over target). If AMC meets the Deutsche Bank target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
