AMC - AMCOR LIMITED Morgans rates AMC as Add (1) - The third...

AMC - AMCOR LIMITED

Morgans rates AMC as Add (1) - The third quarter result was above Morgans expectations. Year-to-date underlying EPS (constant currency) rose 16%, with higher volumes and margins in both Flexibles and Rigid Plastics.
Management issued another earnings upgrade with FY21 underlying earnings growth now expected to be 14-15% from 10-14% previously. The broker highlights Bemis synergy benefits continue to track well with around US$55m delivered year-to-date.
Morgans maintains the Add rating and increases the target price to $17.70 from $17.10, due largely to a roll-forward of the Morgans financial model to FY22 forecasts.
Target price is $17.70 Current Price is $15.81 Difference: $1.89 If AMC meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges). Current consensus price target is $16.98, suggesting upside of 7.4%(ex-dividends)The company's fiscal year ends in June.
Forecast for FY21:
Morgans forecasts a full year FY21 dividend of 64.19 cents and EPS of 101.07 cents . At the last closing share price the estimated dividend yield is 4.06%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.64. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 94.9, implying annual growth of N/A. Current consensus DPS estimate is 60.9, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 16.7.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 68.29 cents and EPS of 109.26 cents . At the last closing share price the estimated dividend yield is 4.32%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.47. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 101.0, implying annual growth of 6.4%. Current consensus DPS estimate is 63.2, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 15.7.