A strong result from AMC. The Bemis integration continues to surprise to the upside, with synergies exceeding expectations.
Forecast earnings growth remains robust, in the 7-11% range, and Amcor have a history of lowballing initial guidance, and upgrading throughout the year.
For us, the investment case remains straightforward, resilient earnings (predominantly staples, which gives rise to a defensive earnings profile), geographic diversification, offshore dollar earnings, population growth, product innovation, bolt on acquisitions and a leadership role in shaping the emissions strategy around plastic packaging.
All at a market multiple.
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