Amcor upgraded to Outperform at Macquarie after Berry takeover deal

Macquarie upgraded Amcor (AMCR) to Outperform from Neutral with an A$18 price target. Berry Global (BERY) has agreed to be acquired in an all-stock transaction by Amcor, with Amcor owning 63% of the new entity and Berry 37%. The Berry acquisition and related synergies give the firm confidence in Amcor seeing an 8% EPS compound annual growth rate to FY29, says the analyst, who adds that Amcor has a “good record on cost synergy delivery” and notes that the firm’s new forecasts do not yet include potential revenue synergies.