Amcor – Buy

Amcor reaffirmed their guidance for 5 – 10% EPS growth and US$160mn in cost synergies over the next 3 years from the Bemis acquisition.

Half of the forecast EPS growth is being achieved through cost savings, so the underlying business remains at low single-digit growth. The Q1 update removes medium-term downside risks and with the stock offering a 4.8% yield, we expect support to build at $14.50.

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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
· Securities
· Derivatives
· Interest in managed investment schemes; and
· Government debentures, bonds and stocks