Amcor has suspended operations at its tobacco plant in Kharkiv, Ukraine last week amid continuing conflict between Russia and Ukraine. Credit Suisse notes the company’s Russia plants continue to operate to the best of its knowledge.
Competitors Phillip Morris and British American Tobacco are also believed to have suspended operations. Ukraine operations generated a US$100m revenue benefit to Amcor in 2020, equating to less than 1% of group revenue, while Russia accounts for around 1.2%.
The Neutral rating and target price of $17.50 are retained.
Sector: Materials.
Target price is $17.50.Current Price is $14.74. Difference: $2.76 – (brackets indicate current price is over target). If AMC meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
