First quarter EPS was a 3% beat versus the UBS estimate and consensus forecasts. Significant challenges posed by a shortage of raw materials were overcome by strong cost control/Bemis synergies and a favourable product mix, explains the analyst.
The broker points to a strong Flexibles performance (the earnings margin was in-line with the previous corresponding period), despite around -US$210m of extra raw material costs. EPS guidance was maintained. UBS lowers its target to $18.83 from $18.93. Buy-rated.
Sector: Materials.
Target price is $18.83.Current Price is $16.11. Difference: $2.72 – (brackets indicate current price is over target). If AMC meets the UBS target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
