Amcor was added to the ASX 20 index this week, replacing AMP.
As an analysis of AMC, we feel the current share price is trading in line with fair value, based upon FY19 EPS. Assuming growth of around 6%, places the stock on a forward yield of 4.6%
With Amcor being a beneficiary of a weaker AUD, (95% of sales outside Australia), we see limited downside risks and recommend accumulating the stock.
Amcor goes ex-div $0.30 on the 4th of September.
Author: Leon Hinde
Leon has been working in the financial services industry for 18 years in management and advisory roles. Leon has extensive experience in general advice and dealings involving securities and derivative financial products.
PS 146 Securities & Derivatives, ADA 1 & 2 accreditation, Responsible Manager Certificate. Leon is authorised to provide financial product advice and deal with respect to the following financial products:
· Deposit Products
· Interest in managed investment schemes; and
· Government debentures, bonds and stocks