Stock Spotlight: Amcor Plc (ASX:AMC)

This week's Stock Spotlight is ASX-listed Amcor PLC.

About Amcor Plc

Amcor plc, together with its subsidiaries, engages in the production and sale of packaging products in Europe, North America, Latin America, and the Asia Pacific. The company operates in two segments, Global Flexible Packaging Solutions and Global Rigid Packaging Solutions. The Global Flexible Packaging Solutions segment develops and supplies flexible packaging products, including polymer resin, aluminum, and fiber based flexible packaging products to the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. The Global Rigid Packaging Solutions segment manufactures rigid packaging containers, closures, dispensing and pharma devices, and related products for the food and beverage applications. The company sells its products through its direct sales force. The company was incorporated in 1926 and is headquartered in Zurich, Switzerland.

Source: EODHD

Key Stats

Source: EODHD. Data as of 13/02/26

Growth Potential

• Trading on an undemanding valuation and material upside to our valuation / price target.
• FY26 guidance assumes no volume growth, in which case any improvement in trading conditions should be a positive catalyst for the share price and potential earnings upgrade.
• Leading global market position (e.g. healthcare flexible packaging), with high barriers to entry (very capital intensive and solutions which require innovation).
• Attractive exposure to both developed markets and emerging markets’ growth. AMC’s end markets are largely resilient, including health, beauty & wellness and Nutrition. Management also provided a positive view on the potential impact from GLP-1s on AMC’s business, with the company recently securing a deal with a major global pharmaceutical customer for the launch of an oral dose GLP-1 therapy drug.
• Earnings growth over the next three years will get material support from self-help initiatives - $650m in synergies from Berry merger plus divestments of non-core assets.
• Capital management initiatives – free cash flow profile should materially improve over the next 1-3 years, which will deleverage the balance sheet and provide flexibility around capital management (likely share buybacks). 
  

Key Risks

• Management fails to deliver on the synergy targets.
• Competitive pressures lead to margin erosion and potential balance sheet pressure (e.g., reduced earnings leading to potential debt covenant breaches).
• Input cost pressures in which the Company is unable to pass on to customers (even though the Company does pass through input costs).
• Deterioration in global economic growth.
• Value destructive acquisition.
• Adverse movements in currency exposures (e.g. AUD/USD).