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Investing.com - Jefferies has upgraded Orora Ltd. (ASX:ORA) stock rating from Hold to Buy while raising its price target to AUD2.50 from AUD2.15, citing encouraging second-half trends and positive outlook for the packaging company.
The upgrade follows what Jefferies described as "a solid set of results" from Orora, with particular attention to the performance of its Saverglass business, which appears to be recovering despite a weaker underlying market backdrop through market share gains and cost management initiatives.
Jefferies has increased its earnings before interest and tax (EBIT) forecasts for Orora’s Saverglass and Cans divisions by 7-13% for fiscal years 2026-2027, suggesting stronger performance ahead for these business segments.
The investment firm views Orora’s current guidance as conservative, noting the company has built in a foreign exchange buffer that could provide additional upside to results.
According to Jefferies’ projections, Orora should deliver fiscal year 2027 Cash EPS of 23 cents per share, implying a cash price-to-earnings ratio of less than 10x, which the firm believes will support ongoing share buybacks while providing sufficient buffer against potential tariff risks.
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