Credit Suisse upgrades to Outperform from Neutral because of the recent fall in the share price. Value has emerged, in the broker’s opinion, and Amcor did not fully participate in the recent market rally.
The broker suspects revenue is less likely to be affected by an economic slowdown associated with the possible coronavirus pandemic.
This stems from the fact Amcor manufactures packaging for defensive industries and its exposure to China is about 4% of revenue. Target is steady at $16.25.
Sector: Materials.
Target price is $16.25.Current Price is $14.35. Difference: $1.90 – (brackets indicate current price is over target). If AMC meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
