UPDATE: Goldman Sachs Starts Amcor Plc. (AMCR) at Neutral

Goldman Sachs analyst Adam Samuelson initiates coverage on Amcor Plc. (NYSE: AMCR) with a Neutral rating and a price target of $12.00.

The analyst comments "AMCR is the largest company in the fragmented global plastic packaging market, with nearly all of its products exposed to consumer or healthcare markets. Since its listing on the NYSE in June 2019, AMCR has offered a healthy total shareholder return algorithm comprised of 5-10% EPS growth target (3-4% organic plus M&A/buyback) and a 4-5% dividend yield, supporting its premium valuation relative to its plastics peer group. Our Neutral rating is predicated on the view that AMCR’s scale position, differentiated geographic diversity, and organic growth prospects are fairly discounted in shares, with AMCR’s core business outlook tempered by risk of price/mix erosion in the base business and lower likelihood that adoption of new innovation/technologies can be needle moving at the corporate growth level in the near-to-medium term. That said, investor concerns over sustainability issues related to plastic packaging are likely overstated, in our view, with AMCR taking a leadership role on the issue in various industry groups and with key global customers that do suggests to us AMCR can sustain low single digit revenue growth in coming years."

For an analyst ratings summary and ratings history on Amcor Plc. click here. For more ratings news on Amcor Plc. click here.

Shares of Amcor Plc. closed at $11.57 yesterday.

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