Credit Suisse upgrades estimates by 4%, projecting FY21 earnings above Amcor’s new growth guidance of 7-12%.
The guidance does not factor in the higher level of volume achieved in the first quarter or allows for that momentum to continue, in the broker’s view.
Amcor has announced a US$150m buyback, partially offset by a lower-than-expected dividend.
It appears to Credit Suisse Amcor is blending dividends and buybacks while targeting a dividend yield of above 4%. Neutral retained. Target rises to $16.00 from $15.50.
Sector: Materials.
Target price is $16.00.Current Price is $16.07. Difference: ($0.07) – (brackets indicate current price is over target). If AMC meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
