Credit Suisse suspects that, with the investor briefing scheduled for April 28, investors may challenge the company’s ambition to acquire packaging distribution assets in the current market.
The broker believes management should be prepared to demonstrate value for shareholders through continued ownership of its US packaging distribution business beyond the current, rich valuation.
The company has signalled a seasonally lower profit is expected in the Americas in the June half. Neutral maintained. Target is $3.75.
Sector: Materials.
Target price is $3.75.Current Price is $3.79. Difference: ($0.04) – (brackets indicate current price is over target). If ORA meets the Credit Suisse target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
