Morgans assesses Amcor’s FY21 result was broadly in-line with expectations, with earnings (EBIT) (constant FX) for Fexibles and Rigid Plastics up 9% and 8%, respectively. The broker lifts its target price to $18.90 from $17.70 and leaves the Add rating unchanged.
Underlying EPS (constant FX) grew 16%, which was slightly ahead of the analyst’s 15% forecast and management’s guidance for 14-15% growth. Guidance is for underlying EPS (constant FX) growth of 7-11% versus Morgans forecast of 9%.
The broker highlights Bemis synergies are running ahead of schedule with US$75m delivered in FY21, bringing cumulative benefits to US$155m.
Target price is $18.90.Current Price is $17.00. Difference: $1.90 – (brackets indicate current price is over target). If AMC meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).