A move by corporates towards sustainability has been weighing on Amcor’s share price, Macquarie notes. Major customer Unilever has now announced a plan to make all its packaging reusable and recyclable by 2025, including a move toward a circular economy of collection and reprocessing.
Not only does Amcor’s forward PE discount to the ASX200 make it the cheapest its been since the GFC, suggesting the impact is already priced in, Amcor is at the forefront of new product initiatives to help customers meet their 100% recycling targets, the broker points out.
Outperform and $17.19 target retained.
Target price is $17.19.Current Price is $13.81. Difference: $3.38 – (brackets indicate current price is over target). If AMC meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).