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Research Alert: CFRA Upgrades Opinion On Shares Of Amcor Plc To Buy From Hold
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Research Alert: CFRA Upgrades Opinion On Shares Of Amcor Plc To Buy From Hold
Aug 14, 2025 11:04 AM

01:40 PM EDT, 08/14/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by $1 to $10, valuing AMCR at an EV/EBITDA of 9.2x our FY 26 EBITDA estimate, a discount to the weighted average (63% AMCR ownership post-merger; 37% BERY) three-year average forward EV/EBITDA of 9.6x (pre-merger AMCR: 10.7x; BERY: 7.7x) to reflect potential integration challenges. We trim our FY 26 EPS view by $0.02 and start our FY 27 estimate at $0.92. We upgrade to Buy on our forecast for AMCR's return to consistent Y/Y revenue growth as the company has finally posted growth after nine straight quarters of declines due to customer destocking. An additional supporting factor is an attractive dividend yield of 5.1% that we view as sustainable given our forecast of $1.8B in free cash flow generation for FY 26. We like management's capital allocation strategy to pause share buybacks in FY 26 and instead focus on deleveraging its balance sheet to a targeted range of 2.5x to 3.0x while utilizing any proceeds from potential asset sales toward further debt reduction.

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