Zurich, Switzerland-based Amcor plc (AMCR) produces and sells packaging products for the food, beverage, pharmaceutical, medical, home, and personal care industry. Valued at a market cap of $13.5 billion, the company, through its flexible and rigid packaging, specialty cartons, and closures, helps leading companies in protecting their products and differentiating their brands.

Shares of this packaging company have lagged behind the broader market over the past 52 weeks. Amcor has fallen 7% over this time frame, while the broader S&P 500 Index ($SPX) has gained 10.2%. However, on a YTD basis, the stock is down 1.1%, outpacing SPX’s 3.9% loss. 

Narrowing the focus, Amcor has also underperformed the Materials Select Sector SPDR Fund’s (XLB) 5.8% downtick over the past 52 weeks and marginal rise on a YTD basis. 

On Apr. 30, Amcor released its Q3 results, and shares of the company plunged 1.3% in the following trading session. The company’s revenue of $3.3 billion declined 2.3% from the year-ago quarter and fell short of the forecasted figure by 4.6%. Weaker consumer demand, primarily in North America, acted as a headwind. On the earnings front, its adjusted EPS climbed 1.1% year-over-year to $0.18 and aligned with Wall Street’s forecast. Looking ahead to fiscal 2025, the company narrowed its adjusted EPS guidance in the range of $0.72 to $0.74. 

For the current fiscal year, ending in June, analysts expect AMCR’s EPS to grow 5.7% year over year to $0.74. The company’s earnings surprise history is promising. It met the consensus estimates in each of the last four quarters.                                               

Among the 11 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on seven “Strong Buy,” and four “Hold” ratings. 

The configuration has remained fairly stable over the past three months. 

On May 2, Michael Roxland from Truist Financial Corporation (TFC) maintained a “Buy” rating on AMCR with a price target of $12, which indicates a 28.9% potential upside from the current levels. 

The mean price target of $11.62 represents a 24.8% potential upside from AMCR’s current price levels, while the Street-high price target of $13 suggests an upside potential of 39.6%.