Stock Price & Analysis

Buy AMCR stock as it is undervalued with positive merger developments. Consider buying cautiously given current market conditions.

Price Prediction for AMCR Stock in 2025

The price prediction for AMCR stock in 2025 is $11.00 by mid-2025 and $12.00 by year-end.

Reasons:

1. Merger Synergies: The upcoming merger with Berry Global is expected to generate $650 million in synergies, enhancing profitability and driving the stock price higher.
2. Technical Indicators: AMCR's stock shows bullish signs with a Stochastic crossover and potential upside from oversold RSI levels.
3. Insider Confidence: Recent insider buying activity indicates management's optimism about the company's future.

The S1 support level for AMCR Stock is $9.35 ,The R1 resistant level for AMCR Stock is $9.85.

As of the end of day on 2025-04-02, the price of AMCR Stock was $9.77.

The target price for AMCR Stock according to analyst rating is 11.73, with the highest price target at 12.30 and the lowest at 10.83. Analysts have a Strong Buy rating on AMCR Stock overall.

The market cap of AMCR is $14.2B.

Analysis and Insights

Valuation Metrics:

AMCR's current valuation metrics indicate a mixed outlook. The forward P/E ratio of 21.33 for Q1 2025 and 17.08 for Q2 2025 suggests a premium compared to industry peers, while the EV/EBITDA of 11.37 and 9.78 reflects moderate valuation levels. The price-to-sales ratio of 4.17 and 3.59, along with a price-to-book ratio of 1.21 and 1.26, indicates AMCR is fairly valued but not significantly overvalued.

Financial Performance:

AMCR's financials show stable margins and improving cash flow. Revenue for Q1 2025 is $3.35 billion, with net income of $191 million, reflecting a net margin of 5.76%. The company's debt-to-equity ratio of 182.92% is high but manageable given its industry. The upcoming merger with Berry Global, expected to close by mid-2025, could enhance AMCR's market position and generate synergies.

Technical Analysis:

The stock's technical indicators show mixed signals. The RSI of 34.56 suggests oversold conditions, potentially indicating a buying opportunity. However, the MACD is slightly negative, indicating bearish momentum. Support levels at $9.10 and resistance at $10.67 are key technical levels to watch.

Event Impact and Insider Sentiment:

The merger with Berry Global has received U.S. antitrust clearance and is progressing well, with expectations of closing by mid-2025. Insider buying activity, with multiple insiders purchasing over $100,000 in shares, signals confidence in AMCR's future prospects.

Conclusion:

AMCR appears fairly valued with a reasonable growth outlook. While the high EV/EBITDA ratio and debt levels are concerns, the merger synergies and stable margins suggest the stock is not significantly overvalued. Investors should monitor the merger's progress and technical indicators for potential buying signals.

Amcor plc is a packaging company. The Company is engaged in developing and producing packaging for food, beverage, pharmaceutical, medical, home and personal-care, and other products. It operates in two segments: Flexibles and Rigid Packaging. The Flexibles segment consists of operations that manufacture flexible and film packaging in the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. The Rigid Packaging segment consists of operations that manufacture rigid containers for a range of predominantly beverage and food products, including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, spreads and personal care items, and plastic caps for a variety of applications. The Company also provides various services, such as field technical services, life cycle assessment, e-commerce packaging solutions, and custom design.

The price prediction for AMCR stock by 2030 is estimated to reach $18 to $22 per share. This forecast is based on the company's strong merger synergies with Berry Global, expected cost savings, and solid financial performance. The stock is anticipated to benefit from improved margins and long-term growth in sustainable packaging solutions.

AMCR has a total of 41000 employees.