Amcor, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Ghansham Panjabi from Robert W. Baird upgraded the rating on the stock to a Buy and gave it a $10.00 price target.
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Ghansham Panjabi has given his Buy rating due to a combination of factors related to Amcor’s self-help earnings potential and attractive valuation. He argues that, despite recent pressure on the stock from soft core volumes and higher leverage following the Berry Global acquisition, Amcor is positioned to deliver solid earnings growth primarily through internal actions such as integration synergies and disciplined cost management. The analyst highlights progress toward more than $650 million of expected synergies over three years, as well as planned asset disposals that should sharpen the portfolio’s focus on higher-value segments like Nutrition, Health, and Beauty.
Panjabi also emphasizes balance sheet improvement as a key element supporting the Buy rating, noting that rising cash flow should drive leverage down toward roughly 3.2x net debt to EBITDA by the end of FY26, with asset sales potentially accelerating that trend. He contends that the current valuation, at about 10x his FY26 EPS estimate of $0.81, is below the 12–16x range seen from 2020 to mid-2024 and does not fully reflect the company’s earnings and deleveraging prospects. With sector conditions expected to gradually improve through 2026 and his $10 price target based on a normalized 12x multiple, Panjabi believes the current share price underestimates Amcor’s medium-term risk‑reward profile, supporting his Outperform/Buy recommendation.
In another report released yesterday, Truist Financial also maintained a Buy rating on the stock with a $12.00 price target.