First half results beat UBS estimates. Earnings growth was supported organically along with the Bemis merger synergies and share buyback accretion. The positive trends have accelerated and Amcor has raised its FY21 constant currency growth guidance to 10-14%.
Nevertheless, UBS expects growth rates will moderate as synergies from the merger fade. The broker is attracted to the company’s leading position across global consumer packaging markets and upgrades to Buy from Hold. Target is reduced to $16.60 from $16.66.
Sector: Materials.
Target price is $16.60.Current Price is $15.03. Difference: $1.57 – (brackets indicate current price is over target). If AMC meets the UBS target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
