Jeffrey Zekauskas, an analyst from J.P. Morgan, has initiated a new Buy rating on Amcor (AMCR).
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Jeffrey Zekauskas has given his Buy rating due to a combination of factors that highlight Amcor’s potential for future growth and value generation. One of the key reasons is the expected synergies from Amcor’s merger with Berry Global, which are projected to result in significant cost savings and operational efficiencies. These synergies, estimated at $650 million, are anticipated to drive a 12% EPS growth in fiscal year 2026, enhancing Amcor’s profitability.
Additionally, Zekauskas points to Amcor’s strong free cash flow generation capabilities, with projections of $1.85 billion in free cash flow for 2026, indicating an 11% yield at current prices. This suggests that the stock is undervalued, providing an attractive investment opportunity. Furthermore, Amcor’s strategic divestitures and focus on cost reduction are expected to support its financial targets, while investors benefit from a solid dividend yield of around 6%. These factors combined form the basis for the positive outlook and Buy rating on Amcor’s stock.
In another report released on September 16, Truist Financial also maintained a Buy rating on the stock with a $11.00 price target.
Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AMCR in relation to earlier this year.