Credit Suisse expects Amcor’s rigid plastics will be affected, envisaging a -5% drop in volume in the second half, given The Coca-Cola Co reported global volumes during April are down -25%.
The weakness is expected to be partially offset by growth in diversified products, based on increased demand for cleaning & personal care items.
Credit Suisse retains an Outperform rating and, on a weaker Australian dollar, raises the target to $16.90 from $16.25.
Sector: Materials.
Target price is $16.90.Current Price is $13.33. Difference: $3.57 – (brackets indicate current price is over target). If AMC meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
