Thoughts on Amcor (AMC) from here

Hi Malcom,

Amcor has been drifting lower for more than a year, its currently ~28% below its 2022 high, noticeably underperforming the ASX.

The biggest issue for AMC is that consumer volumes are in negative territory e.g. AMC’s key end markets in the US such as food and beverage are down a few % and Amcor still expects lower consumer demand and destocking trends to persist into 1HFY24. Also, as we enter a new greener world, we feel packaging companies are going to encounter a tougher operating environment that may often necessitate relatively costly R&D.

• We believe AMC is a solid business, but the recent large equity raise from Orora (ORA) would have taken some liquidity from the sector, and ORA is actually the business we prefer, although as we noted last week here, we think we have time on our side to buy it.

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Amcor Plc (AMC)

LAST UPDATED 13/10/2023 12:20

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Amcor Plc (AMC)

LAST UPDATED 13/10/2023 12:20