Amcor’s Stock Struggles While Analysts Remain Optimistic
Zurich, Switzerland-based Amcor plc (AMCR) is a key player in the packaging sector, producing and selling products for industries such as food, beverages, pharmaceuticals, medical supplies, and personal care. The company has a market capitalization of $13.5 billion and offers flexible and rigid packaging, specialty cartons, and closures designed to protect products and help brands stand out.
Recent Performance Compared to Market
Over the past 52 weeks, Amcor’s shares have underperformed relative to the broader market. The stock has declined by 7% during this period, while the S&P 500 Index ($SPX) has risen by 10.2%. However, looking at the year-to-date (YTD) results, Amcor is down only 1.1%, which is better than the S&P 500’s decline of 3.9%.
When focusing on sector performance, Amcor has also lagged behind the Materials Select Sector SPDR Fund (XLB), which decreased by 5.8% over the same 52-week span and showed limited growth YTD.
Q3 Results and Future Estimates
Amcor’s Q3 results were released on April 30, resulting in a 1.3% drop in stock price in the subsequent trading session. The company reported revenue of $3.3 billion, reflecting a 2.3% decrease from the previous year’s quarter and falling short of expectations by 4.6%. Weaker consumer demand in North America contributed significantly to this decline. In terms of earnings, adjusted EPS increased by 1.1% year-over-year to $0.18, matching Wall Street’s forecasts. For fiscal 2025, Amcor has updated its adjusted EPS guidance to a range of $0.72 to $0.74.
Looking ahead, analysts project a 5.7% growth in EPS for the current fiscal year, which ends in June, forecasting it to reach $0.74. Additionally, Amcor has a positive earnings surprise history, meeting consensus estimates in all of the last four quarters.
Analyst Ratings and Price Targets
Among the 11 analysts monitoring Amcor, the consensus rating is a “Moderate Buy,” based on seven “Strong Buy” and four “Hold” recommendations. This configuration has remained stable over the last three months.
On May 2, Michael Roxland from Truist Financial Corporation (TFC) reaffirmed a “Buy” rating on AMCR, setting a price target of $12, which suggests a potential upside of 28.9% from current levels. The average price target stands at $11.62, indicating a possible 24.8% increase, while the highest price target of $13 points to a potential upside of 39.6%.
On the date of publication, Neharika Jain did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data are solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
