AMC - AMCOR LIMITED Morgans rates AMC as Hold (3) - Amcor's...

AMC - AMCOR LIMITED

Morgans rates AMC as Hold (3) - Amcor's result met the broker once adjusted for adverse currency moves. Flexibles delivered a reasonable result while Rigid Plastics returned to growth after a tough FY18, the broker notes. Emerging market earnings stood out in rising 9% after falling -9% the same period last year while developed market earnings were flat.
The Bemis acquisition is on track to be completed by June, with regulatory approvals gradually being ticked off. The broker is cautious on the Bemis deal given dilution and integration risks and thus retains Hold. Increased peer multiples lead to a target price increase to $14.14 from $13.78.
Target price is $14.14 Current Price is $14.56 Difference: minus $0.42 (current price is over target). If AMC meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss). Current consensus price target is $15.55, suggesting upside of 6.8%(ex-dividends)The company's fiscal year ends in June.
Forecast for FY19:
Morgans forecasts a full year FY19 dividend of 60.91 cents and EPS of 86.63 cents .At the last closing share price the estimated dividend yield is 4.18%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.81. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 86.3, implying annual growth of N/A.Current consensus DPS estimate is 64.1, implying a prospective dividend yield of 4.4%.Current consensus EPS estimate suggests the PER is 16.9.Forecast for FY20:
Morgans forecasts a full year FY20 dividend of 62.26 cents and EPS of 94.75 cents .At the last closing share price the estimated dividend yield is 4.28%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.37. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 96.6, implying annual growth of 11.9%.Current consensus DPS estimate is 69.2, implying a prospective dividend yield of 4.8%.Current consensus EPS estimate suggests the PER is 15.1.This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.Market Sentiment: 0.8All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources