AMC – UBS rates the stock as Buy

By Broker News | More Articles by Broker News

FY21 results were ahead of UBS estimates. Growth was underpinned by Bemis synergies and share buyback accretion. Guidance for FY22 is for growth of 7-11%.

The Bemis merger synergy target has also been raised to around $200m with the final benefits to be delivered in FY22. With free cash flow growth of up to 9% the company has capacity to fund $700m in dividends as well as the $400m share buyback program that was announced.

UBS finds the valuation attractive and retains a Buy rating. Target is raised to $18.93 from $17.40.

Sector: Materials.


Target price is $18.93.Current Price is $17.02. Difference: $1.91 – (brackets indicate current price is over target). If AMC meets the UBS target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).




About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →