Credit Suisse refines forecasts, noting new disclosures in the annual report. Organic operating earnings growth for the flexibles division has been confirmed at 2-3%. This is lower than the broker was modelling and causes a slight downgrade to estimates.
Still, Credit Suisse is encouraged that the flexibles division is growing organically and not simply sourcing growth from synergy.
Elsewhere, the broker observes North American earnings for more stable and Latin American profitability may swing sharply upwards as these economies recover. Neutral retained. Target is reduced to $15.50 from $16.10.
Sector: Materials.
Target price is $15.50.Current Price is $15.15. Difference: $0.35 – (brackets indicate current price is over target). If AMC meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
