Orora’s result came in broadly in line with the broker, but required a 2% earnings beat from Australasia to offset a -5% miss from North America. The broker has trimmed FY19 forecasts and dropped its target to $3.70 from $3.87.
The company was very quiet on the M&A front in FY18, the broker notes, as it concentrated on bedding down its new cloud-based system. With that now in place, a solid pipeline of opportunities looms in FY19 and Orora has balance sheet strength to exploit. Add retained.
Target price is $3.70.Current Price is $3.48. Difference: $0.22 – (brackets indicate current price is over target). If ORA meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).