Stifel Upgrades Amcor (AMCR) to Buy, Slightly Lowers Price Target

Amcor plc (NYSE:AMCR) is one of the 11 Dirt Cheap Stocks to Buy According to Analysts. On October 10, Stifel upgraded Amcor plc (NYSE:AMCR) from Hold to Buy but slightly reduced its price target from $10.83 to $10.20.

This decision came after the merger between Amcor plc (NYSE:AMCR) and Berry Global, which created a global leader in consumer packaging solutions with a larger and more complete product portfolio.

Stifel Upgrades Amcor (AMCR) to Buy, Slightly Lowers Price Target

Stifel noted that Amcor plc (NYSE:AMCR) expects to achieve cost synergies of $530 million, growth synergies of $60 million, and financial synergies of $60 million from the merger with Berry Global.

The research firm noted that delivering these expected synergies to the bottom line and accelerating growth could be challenging as both companies have a history of limited growth. Despite this, Stifel believes that Amcor plc’s (NYSE:AMCR) recent weak performance has reset expectations accordingly.

Stifel forecasts that Amcor plc (NYSE:AMCR) will have realized $355 million of cost synergies through 2028. This will help improve margins, free cash flow, and lead to a 9% adjusted EPS compound annual growth rate from 2025 to 2028.

Amcor plc (NYSE:AMCR) is the global leader in developing and producing consumer packaging and dispensing solutions. The company’s products serve a wide range of categories like nutrition, health, beauty, and wellness.

While we acknowledge the potential of AMCR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMCR and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.