AMC – Macquarie rates the stock as Outperform

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In its investor day briefing, Amcor announced it was on track for its products to be fully recyclable by 2025.

The company recently released a new Am-Lite HeatFlex product, the world’s first recyclable flexible retort pouch, combining recyclability with the ability to withstand heat-sterilisation. This also reduces the carbon footprint of Amcor’s existing product by 60%.

The company asserts it has the financial capacity to pursue further disciplined M&A. Macquarie believes speciality containers and global closures are potential target M&A areas. Despite the Bemis acquisition, Macquarie points out North America and European flexibles markets remain fragmented, implying the potential for bolt-on acquisitions in core flexibles.

Macquarie retains its Outperform rating with a target price of $17.

Sector: Materials.

Target price is $17.00.Current Price is $15.33. Difference: $1.67 – (brackets indicate current price is over target). If AMC meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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