AMC shares dipped earlier in the month following its 1H24 results, which showed a drop in sales due to soft consumer demand and ongoing customer destocking. However, they delivered solid cost control to help offset soft volumes, with more than US$200mn of cost savings. This global packaging business that used to house the Orora (ORA) business some years ago, has been a standout market underperformer over the last 18 months, and we believe the company-constrained EPS growth outlook in FY24/25 will continue to keep investors on the sidelines.
- We can see AMC testing the $13 are over the coming year, around 7% lower
MM is neutral to bearish towards AMC, preferring ORA
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