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Investing.com - JPMorgan has initiated coverage on packaging leader Amcor Plc. (NYSE:AMCR) with an Overweight rating and a $10.00 price target. The company, currently trading at $8.31 and near its 52-week low of $8.16, offers a substantial 6.14% dividend yield and has raised its dividend for six consecutive years.
The investment bank’s price target represents a December 2026 outlook, reflecting a 9.1% free cash flow yield for 2026 compared to the current estimate of 11%. According to InvestingPro data, Amcor currently trades at an EV/EBITDA multiple of 16.53x, with revenue growth of 10.04% in the last twelve months.
JPMorgan’s valuation model includes a one multiple point increase from 7.5x to 8.5x on an enterprise value to EBITDA basis, using 2027 estimates as the foundation for its analysis.
The firm also suggested a longer-term price objective of $12 could be reasonable, which would represent an approximately 40% increase from current levels.
This longer-term target would imply an annual free cash flow yield of about 8.5% for fiscal 2027, according to JPMorgan’s research note.
In other recent news, Amcor Plc reported its fourth-quarter earnings for 2025, revealing mixed results. The company posted earnings per share (EPS) of $0.20, which was slightly below the forecast of $0.21. Additionally, Amcor’s revenue came in at $5.08 billion, missing the expected $5.18 billion. Despite these results, Jefferies has reiterated its Buy rating on Amcor stock, maintaining a price target of $11.67. The research firm highlighted Amcor’s 10% free cash flow yield as a positive aspect. Jefferies also noted that while the company faced challenges in North America, its core categories experienced low single-digit growth. These developments reflect the ongoing dynamics and investor sentiment surrounding Amcor.
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