Credit Suisse rates AMC as Neutral (3) - The broker notes China is now taxing plastic resins at 25% but this has not impacted on Amcor's performance in China given resin prices fell, offsetting the tax. However Amcor's PE is now up to 17x which the broker sees as stretched, implying investors are paying for 13 years of earnings.
This might be sustainable, but the broker suggests restrictions against plastic production must soon come into being on a global environmental basis. Neutral and $14.90 target retained.
Target price is $14.90 Current Price is $16.06 Difference: minus $1.16 (current price is over target). If AMC meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss). Current consensus price target is $15.59, suggesting downside of -4.5%(ex-dividends)The company's fiscal year ends in June.
Forecast for FY19:
Credit Suisse forecasts a full year FY19 dividend of 61.70 cents and EPS of 81.70 cents .At the last closing share price the estimated dividend yield is 3.84%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.66. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 83.9, implying annual growth of N/A.Current consensus DPS estimate is 65.0, implying a prospective dividend yield of 4.0%.Current consensus EPS estimate suggests the PER is 19.5.Forecast for FY20:
Credit Suisse forecasts a full year FY20 dividend of 67.76 cents and EPS of 91.91 cents .At the last closing share price the estimated dividend yield is 4.22%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.47. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 96.9, implying annual growth of 15.5%.Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 4.2%.Current consensus EPS estimate suggests the PER is 16.9.This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.Market Sentiment: 0.6All consensus data are updated until yesterday.
AMC Price at posting:
$16.40 Sentiment: Buy Disclosure: Held
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