Amcor’s result met the broker once adjusted for adverse currency moves. Flexibles delivered a reasonable result while Rigid Plastics returned to growth after a tough FY18, the broker notes. Emerging market earnings stood out in rising 9% after falling -9% the same period last year while developed market earnings were flat.
The Bemis acquisition is on track to be completed by June, with regulatory approvals gradually being ticked off. The broker is cautious on the Bemis deal given dilution and integration risks and thus retains Hold. Increased peer multiples lead to a target price increase to $14.14 from $13.78.
Target price is $14.14.Current Price is $14.56. Difference: ($0.42) – (brackets indicate current price is over target). If AMC meets the Morgans target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).