Orora Ltd. (ORRAF – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Niraj Shah from Goldman Sachs maintained a Buy rating on the stock and has a A$3.00 price target.
Niraj Shah has given his Buy rating due to a combination of factors surrounding Orora Ltd.’s performance and future outlook. Despite an anticipated downturn in guidance from its Saverglass acquisition and a disappointing margin pressure in North America, Shah sees underlying value in the company. The reduction in expected earnings before interest and taxes (EBIT) and net profit after tax (NPAT) has been factored into a revised discounted cash flow (DCF) valuation, yet the company’s stock retains its appeal in Shah’s analysis.
Shah’s assessment suggests that while the market has priced in the immediate challenges Orora Ltd. faces, including competitive pricing pressures and a potential slowdown in operational efficiencies, these are viewed as temporary setbacks rather than long-term impediments. The Buy rating indicates confidence in the company’s ability to navigate current headwinds, with an implied expectation of recovery and growth in profitability in the foreseeable future. Shah’s valuation reflects a belief that the current share price offers an attractive entry point for investors, with potential upside as the company adjusts to market conditions and improves its operations.
According to TipRanks, Shah is a 4-star analyst with an average return of 9.6% and a 61.11% success rate. Shah covers the Industrials sector, focusing on stocks such as Reliance Worldwide Corp. Ltd., CSR Limited, and Aurizon Holdings Ltd..
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Orora Ltd. (ORRAF) Company Description:
Orora Ltd. engages in the manufacturing and distribution fiber, glass and aluminum beverage cans. It operates through the following segments: Orora Australasia, Orora North America and Other. The Orora Australasia segment focuses on the manufacture of fiber and beverage packaging products within Australia and New Zealand. Its products include glass bottles, beverage cans, wines closures, corrugated boxes, cartons and sacks, and the manufacture of recycled paper. The Orora North America segment activities include purchasing, warehousing, selling and delivering a range of packaging and other related materials. Its activities also include integrated corrugated sheet and box manufacturing and equipment sales capabilities and the point of purchase retail display solutions, and other visual communication services. The Other segment involves in the corporate functions of the group. The company was founded in 1949 and is headquartered in Melbourne, Australia.
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