Amcor stock initiated with Overweight rating by JPMorgan on cash flow strength

Published 19/09/2025, 12:10
Amcor stock initiated with Overweight rating by JPMorgan on cash flow strength

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.