Truist Financial has raised its price target for Amcor (NYSE: AMCR) from $11.00 to $12.00, as detailed in a research note released on Tuesday. The brokerage firm has assigned a “buy” rating to the stock, indicating a potential upside of 41.29% based on Amcor’s previous closing price.
This positive outlook follows a series of assessments from various equity analysts. On September 19, 2023, JPMorgan Chase & Co. initiated coverage on Amcor, setting an “overweight” rating with a price target of $10.00. The Goldman Sachs Group also began coverage on September 10, giving Amcor a “buy” rating. Meanwhile, Stifel Nicolaus upgraded the stock from a “hold” to a “buy” rating with a price target of $10.20 on October 10. Morgan Stanley reaffirmed an “overweight” rating with a target of $11.50 on November 12. Conversely, Wells Fargo & Company reduced their target from $11.00 to $9.00, while maintaining an “overweight” rating.
Analysts have generally expressed optimism regarding Amcor, with eight rating the stock as a buy and four as a hold. According to MarketBeat, the average rating is “Moderate Buy,” and the consensus price target stands at $10.67.
Upcoming Stock Split and Recent Performance
Amcor is set to execute a 1-5 reverse stock split before market opening on January 15, 2024. This decision was announced on December 11, 2023, with adjustments to shareholders’ holdings occurring after market closure on January 14.
In its most recent earnings report, released on November 5, Amcor met analysts’ expectations with an earnings per share (EPS) of $0.19, consistent with the consensus estimate. The company reported a revenue of $5.75 billion, slightly below the anticipated $5.77 billion. Year-over-year, Amcor’s revenue grew by 71.3%, up from $0.16 EPS in the same quarter the previous year. Analysts project Amcor will achieve an EPS of 0.74 for the current fiscal year.
Institutional Investment Trends
Recent shifts in institutional investment have also marked Amcor’s landscape. Vanguard Group Inc. significantly increased its holdings by 61.8% in the second quarter, now owning 110,228,036 shares valued at approximately $1.01 billion. State Street Corp. followed suit, enhancing its stake by 41.4%, resulting in ownership of 129,701,986 shares worth around $1.19 billion.
Norges Bank acquired a new stake during the second quarter valued at roughly $328.8 million. Charles Schwab Investment Management Inc. also raised its investment by 62.1%, now holding 80,770,303 shares valued at approximately $742.3 million. M&G PLC increased its holdings by 26.6% in the third quarter, owning 108,333,984 shares valued at around $866.7 million. Notably, institutional investors collectively own 45.14% of Amcor’s stock.
About Amcor
Amcor (NYSE: AMCR) is a global leader in packaging solutions, specializing in flexible and rigid packaging for various sectors, including food, beverage, pharmaceuticals, and personal care products. The company’s diverse product range includes flexible films, pouches, specialty cartons, and metal closures. Established in its current form in 2005 after a spin-off from a mining conglomerate, Amcor has expanded its capabilities through strategic acquisitions and organic investments.
Truist Financial’s revised outlook reflects growing confidence in Amcor’s potential for future growth amid a robust market for packaging solutions.
