2149 GMT - Packaging company Amcor's newest bull says organic growth is key to unlocking long-term value for shareholders. Jefferies, which raises Amcor to buy from hold, points out that Amcor's volume growth has been anemic since it bought Bemis some years ago. "We estimate cumulative volumes have declined 5%, or 1% per annum since FY 2019, raising concerns around the outlook for plastic packaging and valuation multiple investors are willing to pay," analyst Ramoun Lazar says. Amcor recently agreed to buy Berry, which has a similarly weak track record. Amcor expects deal savings to drive growth in new business areas. "We are not yet convinced (consensus also skeptical) with Jefferies's long-term volume forecasts circa 0-1% per annum," Lazar says. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
February 03, 2025 16:49 ET (21:49 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.