Macquarie rates AMC as Outperform (1) - Macquarie assesses currency changes for Amcor and highlights with around 50% of earnings generated in America, the stronger US dollar negatively impacts the company's US earnings on translation but is positive when converted back to Australian dollars.
All else being equal, a stronger USD lowers reported net debt.
The broker notes Amcor is due to report 2Q25 earnings in early February, forecast to be similar to 1Q25 at US16.2c per share.
Healthcare is expected to improve in 2H25, and management has retained EPS guidance of US72c-US76c for FY25, representing growth of 3%-8%.
Target price slips to $18 from $18.04. Outperform rating retained.
Target price is $18.00 Current Price is $15.41 Difference: $2.59 If AMC meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges). Current consensus price target is $16.40, suggesting upside of 6.4%(ex-dividends)The company's fiscal year ends in June.
Forecast for FY25:
Macquarie forecasts a full year FY25 dividend of 77.06 cents and EPS of 109.10 cents . At the last closing share price the estimated dividend yield is 5.00%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.13. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 119.2, implying annual growth of N/A. Current consensus DPS estimate is 82.0, implying a prospective dividend yield of 5.3%. Current consensus EPS estimate suggests the PER is 12.9.
Forecast for FY26:
Macquarie forecasts a full year FY26 dividend of 78.57 cents and EPS of 117.41 cents . At the last closing share price the estimated dividend yield is 5.10%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.13. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 127.7, implying annual growth of 7.1%. Current consensus DPS estimate is 83.6, implying a prospective dividend yield of 5.4%. Current consensus EPS estimate suggests the PER is 12.1.
AMC Price at posting:
$15.26 Sentiment: Buy Disclosure: Held
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