Breakingviews - Amcor’s cheap packaging deal hides a fragile item
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2024
0mins
Source: Reuters
Amcor's Acquisition of Berry Global: Amcor has agreed to acquire U.S. rival Berry Global for $8.4 billion in an all-share deal, which includes a premium of less than 10% and aims to achieve approximately $600 million in cost savings. However, the deal has faced skepticism from investors, leading to a decline in Amcor's share price.
Challenges Ahead: The merger presents integration complexities and challenges due to Berry's declining revenue projections and significant debt. Additionally, both companies must navigate broader industry pressures such as rising costs and regulatory demands for sustainability.
Analyst Views on IP
Wall Street analysts forecast IP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IP is 48.35 USD with a low forecast of 36.00 USD and a high forecast of 57.80 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
9 Buy
2 Hold
1 Sell
Moderate Buy
Current: 41.840
Low
36.00
Averages
48.35
High
57.80
Current: 41.840
Low
36.00
Averages
48.35
High
57.80
About IP
International Paper Company provides sustainable packaging solutions. The Company is a global producer of renewable fiber-based packaging products. Its segments include Packaging Solutions North America and Packaging Solutions EMEA. Packaging Solutions North America and Packaging Solutions EMEA segments are primarily focused on producing fiber-based packaging. It produces linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft of which a majority of its production is converted into corrugated packaging and other packaging. The Company’s recycling solutions and services manage fiber recovery programs for retailers, grocers, e-commerce, distribution centers, manufacturers, and its own box plants by managing recovered fiber streams used in packaging production.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
