Amcor’s recently announced next-generation PET bottle technology will allow the production of hot-fill containers with -30% less plastic resin and energy. Credit Suisse notes the new tech targets the hot-fill beverage market, which it assumes accounts for 10% of company sales.
The broker also assume Amcor holds around 45% US hot-fill beverage market share by volume, with a total addressable market of $2.6bn, with previous innovation allowing the company to gain market share.
Noting Amcor is currently trading above major packaging peers, Credit Suisse retains a Neutral rating and target price of $17.00.
Target price is $17.00.Current Price is $18.18. Difference: ($1.18) – (brackets indicate current price is over target). If AMC meets the Credit Suisse target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).