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 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.

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