The third quarter result was above Morgans expectations. Year-to-date underlying EPS (constant currency) rose 16%, with higher volumes and margins in both Flexibles and Rigid Plastics.
Management issued another earnings upgrade with FY21 underlying earnings growth now expected to be 14-15% from 10-14% previously. The broker highlights Bemis synergy benefits continue to track well with around US$55m delivered year-to-date.
Morgans maintains the Add rating and increases the target price to $17.70 from $17.10, due largely to a roll-forward of the Morgans financial model to FY22 forecasts.
Target price is $17.70.Current Price is $15.81. Difference: $1.89 – (brackets indicate current price is over target). If AMC meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).