Macquarie believes Amcor is on-track to deliver on its guidance of a 9.5% to 11% increase in FY22 EPS and expects Amcor will be one of the few companies to offer FY23 guidance in this reporting period.
Rising net interest expenses from its 50/50 fixed/floating debt profile and its exposure to Russia are expected to be key areas of investor focus, as will the fall in the euro against the $US to 20-year lows.
However, a weaker $A should prove a positive, says the broker, while the consumer staples profile is strongly defensive in the current environment.
FY23, FY24 and FY25 EPS forecasts rise 1%. Target price rises to $19 from $18.07. Outperform rating retained.
Sector: Materials.
Target price is $19.00.Current Price is $18.22. Difference: $0.78 – (brackets indicate current price is over target). If AMC meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
