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Amcor’s Hold Rating Reflects Balanced Performance Amid Operational Challenges and Modest Growth Outlook
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Amcor’s Hold Rating Reflects Balanced Performance Amid Operational Challenges and Modest Growth Outlook

In a report released yesterday, Lars Kjellberg from Stifel Nicolaus maintained a Hold rating on Amcor (AMCRResearch Report), with a price target of $10.83.

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Lars Kjellberg has given his Hold rating due to a combination of factors associated with Amcor’s performance and outlook. The company’s recent quarterly results aligned closely with market expectations, with sales slightly below consensus and a minor shortfall in EBIT. Despite a steady performance, the EPS guidance for FY25 indicates a modest growth in earnings, which aligns with market consensus but does not suggest significant upside potential.
The company’s operational challenges, such as the continued destocking in healthcare and soft demand in the North American beverage sector, have impacted overall volumes. Additionally, while Amcor has managed to maintain a stable dividend yield and reduce debt through strategic actions like the sale of its interest in Bericap North America, the cautious outlook on earnings growth and the lack of major catalysts for substantial stock price appreciation contribute to the Hold recommendation. Therefore, the rating reflects a balanced view of the company’s strengths and the headwinds it faces in the current economic environment.