Tesla could be a $10,000 stock in a decade, says longtime bull Ron Baron
Investing.com - Morgan Stanley has reduced its price target on Amcor Plc. (NYSE:AMCR) to $11.50 from $12.00 while maintaining an Overweight rating on the packaging company’s stock. Despite the reduction, the new target still represents significant upside potential from the current price of $8.46. According to InvestingPro data, Amcor pays a substantial 6.15% dividend yield and has raised its dividend for 7 consecutive years.
The price target adjustment follows Amcor’s first-quarter fiscal 2026 results, which prompted Morgan Stanley to update its financial model for the company.
The investment bank lowered its operating profit (EBIT) forecasts by 1%, 2%, and 2% for fiscal years 2026, 2027, and 2028, respectively. Earnings per share projections increased by 1% for fiscal 2026 but decreased by 2% and 3% for fiscal 2027 and 2028.
Morgan Stanley’s new price target is based on three equally weighted valuation methods: a price-to-earnings approach ($9.68), an EV/EBITDA sum-of-the-parts analysis ($9.86), and a discounted cash flow model ($14.33). The company currently trades at a P/E ratio of 26.28, which aligns with the "trading at a high earnings multiple" observation from InvestingPro.
The firm maintained its 8.0% weighted average cost of capital assumption and used an unchanged currency exchange rate of 0.65 to translate its U.S. dollar-based price target to Australian dollars. With a market capitalization of $19.6 billion and analyst targets ranging from $9 to $12, Amcor remains a significant player in the packaging industry. For deeper insights into Amcor’s financials and 5+ additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Amcor reported its first-quarter earnings for fiscal year 2026, exceeding analyst expectations. The company achieved an adjusted earnings per share (EPS) of $0.19, slightly above the forecasted $0.18. Additionally, revenue reached $5.75 billion, surpassing projections. These results have drawn positive attention from investors. In another development, Morgan Stanley adjusted its price target for Amcor to $11.50 from a previous $12.00, while maintaining an Overweight rating. The firm also revised its earnings before interest and taxes (EBIT) forecast for Amcor, reducing it by 1% for fiscal 2026 and by 2% for fiscal 2027 and fiscal 2028. These updates reflect Morgan Stanley’s mixed outlook on Amcor’s future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.