Macquarie assesses Amcor is managing raw materials well and executing on Bemis. The company reported nine-month net profit of $805m which is up 12% and represents 70% of Macquarie’s full year forecasts.
The broker notes the top line is yet to reveal the flow-through of higher raw materials costs which is likely to come in the fourth quarter. Also, the company will start to lap stronger comparables over the next 12 months.
Neutral maintained. Target rises to $16.42 from $16.09.
Sector: Materials.
Target price is $16.42.Current Price is $15.81. Difference: $0.61 – (brackets indicate current price is over target). If AMC meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
