Orora Ltd. (ORRAF – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Niraj Shah from Goldman Sachs maintained a Hold rating on the stock and has a A$2.15 price target.
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Niraj Shah has given his Hold rating due to a combination of factors that influence Orora Ltd.’s current market position. The recent sale of OPS and the subsequent debt reduction along with a share buyback are significant events that have been considered in the updated forecasts. Furthermore, the decision to shut down one of the company’s glass furnaces in Australia also impacts the outlook.
While there has been an encouraging increase in orders for Saverglass, caution remains regarding the short-term revenue and earnings prospects. The valuation is derived from an equal-weighted average of a DCF and EV/EBIT based approach, leading to a target price of A$2.40 per share. This represents a 7% upside, aligning with the median upside across other similar evaluations, leading to a Hold rating being reinstated.
In another report released on February 14, Morgans also maintained a Hold rating on the stock with a A$2.15 price target.