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Zurich, Switzerland-based Amcor plc (AMCR) is a global packaging company with a market cap of $13.5 billion. It develops and sells packaging solutions for a wide range of industries, including food, beverages, pharmaceuticals, medical, home and personal care, as well as other consumer and industrial products.
This packaging company has underperformed the broader market over the past 52 weeks. Shares of Amcor have fallen 10.8% over this time frame, while the broader S&P 500 Index ($SPX) has gained 16.6%. Moreover, on a YTD basis, the stock is down marginally, compared to SPX’s 7.8% uptick.
Narrowing the focus, Amcor has also lagged behind the Materials Select Sector SPDR Fund’s (XLB) 3.8% downtick over the past 52 weeks and 4.3% rise on a YTD basis.
On Apr. 30, Amcor delivered mixed Q3 results, and its shares tumbled 1.3% on the following day. The company’s revenue declined 2.3% year-over-year to $3.3 billion, missing consensus estimates by 4.6%. The shortfall was due to softened consumer demand and unfavorable foreign exchange rates. However, despite the fall in revenues, its adjusted EPS of $0.18 increased by a modest 1.1% from the year-ago quarter, meeting analyst expectations.
For fiscal 2025, which ended in June, analysts expect Amcor’s EPS to grow 4.3% year over year to $0.73. The company’s earnings surprise history is promising. It met the consensus estimates in each of the last four quarters.
Among the 12 analysts covering the stock, the consensus rating is a “Strong Buy,” which is based on eight “Strong Buy,” one "Moderate Buy,” and three “Hold” ratings.
This configuration is more bullish than two months ago, with an overall “Moderate Buy” rating, consisting of seven analysts suggesting a “Strong Buy.”
On Jul. 18, Wells Fargo & Company (WFC) analyst Gabe Hajde maintained an “Overweight” rating on AMCR and raised its price target to $11, indicating a 17.6% potential upside from the current levels.
The mean price target of $11.50 represents a 23% premium from AMCR’s current price levels, while the Street-high price target of $13 suggests an ambitious upside potential of 39%.
