Amcor’s Stock Struggles Despite Growth Potential
Amcor plc (AMCR), based in Zurich, Switzerland, is a major player in the packaging industry, serving markets across Europe, North America, Latin America, Africa, and the Indo-Pacific regions. The company boasts a market cap of over $14 billion and operates through two main segments: Flexibles and Rigid Packaging.
Underperformance in the Market
Over the past year, Amcor has faced challenges, trailing the broader market significantly. The company’s stock has climbed just 1.8% in the last 52 weeks and 1.6% year-to-date, while the S&P 500 Index ($SPX) surged by 20.9% in the same timeframe, with a 1.9% increase in 2025.
Drilling deeper, AMCR also fell short compared to the Materials Select Sector SPDR Fund’s (XLB) 7% return in the past year and a 5.6% gain year-to-date.
Q1 Results and Impact on Stock
Amcor’s stock price took a hit, plummeting 7.8% after disappointing Q1 results were released on October 31. Despite a marked improvement in volumes, unfavorable pricing and foreign exchange rates negatively affected revenue. For the quarter, Amcor reported a 2.6% drop in net sales year-over-year, totaling around $3.4 billion, which fell short of analysts’ expectations by 6.1%. However, the company did report an adjusted EPS of $0.16, aligning with the consensus estimates, and has reaffirmed its full-year earnings guidance of $0.72 to $0.76 per share.
Future Outlook and Analyst Ratings
Looking ahead, analysts project a 5.7% year-over-year growth in adjusted EPS to $0.74 for the current fiscal year ending in June 2025. Amcor has demonstrated a solid history of earnings surprises, surpassing or meeting bottom-line expectations in each of the last four quarters.
Currently, among 10 analysts covering AMCR, the consensus rating has improved to “Moderate Buy,” consisting of six “Strong Buy” and four “Hold” ratings. This is a notable shift from two months ago when the sentiment was more cautious, with a consensus of “Hold” ratings and just two “Strong Buy” recommendations.
Upgrades and Price Targets
On December 11, BofA Securities upgraded AMCR to a “Buy” rating and set a price target of $12.50, indicating a potential upside of 30.8% from current levels. Furthermore, the mean price target stands at $11.57, suggesting a 21% premium compared to current trading prices.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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