The combination Amcor-Bemis has started selling off non-core assets and Deutsche Bank analysts suggest with the proceeds from these divestments management could announce a share buyback of up to US$1bn as early as the full year result in August.
In addition, the analysts believe there is upside surprise potential from merger synergies. Deutsche Bank retains the $19 price target alongside its Buy recommendation, while projecting 3 year EPS CAGR of 11%.
Target price is $19.00.Current Price is $15.78. Difference: $3.22 – (brackets indicate current price is over target). If AMC meets the Deutsche Bank target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).