Amcor has received EU approval to proceed with the Bemis acquisition subject to the divestment of two packaging plants in the UK and one in Ireland, which represent around US$170m of sales.
The broker has reduced FY20-21 forecast earnings by -1% in response but estimates the divestments would reap some US$250m.
The net effect on valuation is immaterial. The broker considers an unchanged $14.90 target to be fair value, hence Neutral retained.
Sector: Materials.
Target price is $14.90.Current Price is $14.63. Difference: $0.27 – (brackets indicate current price is over target). If AMC meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
