AMC – Macquarie rates the stock as Outperform

By Broker News | More Articles by Broker News

In its investor day briefing, Amcor announced it was on track for its products to be fully recyclable by 2025.

The company recently released a new Am-Lite HeatFlex product, the world’s first recyclable flexible retort pouch, combining recyclability with the ability to withstand heat-sterilisation. This also reduces the carbon footprint of Amcor’s existing product by 60%.

The company asserts it has the financial capacity to pursue further disciplined M&A. Macquarie believes speciality containers and global closures are potential target M&A areas. Despite the Bemis acquisition, Macquarie points out North America and European flexibles markets remain fragmented, implying the potential for bolt-on acquisitions in core flexibles.

Macquarie retains its Outperform rating with a target price of $17.

Sector: Materials.

Target price is $17.00.Current Price is $15.33. Difference: $1.67 – (brackets indicate current price is over target). If AMC meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).

RELATED COMPANIESTagged

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →