Australia's Orora hits 3-1/2-yr low; brokerages cut earnings forecast, PT

Orora

03/04/2024 01:58

(Updates with Citi note, share move)
    ** Shares of packaging company Orora  ORA.AX  down as much
as 5.8% to A$2.185, their lowest level since Sept. 18, 2020
    ** Jefferies cuts price target for co to A$2.40 from A$2.75,
while Citi trims PT to A$2.86 from A$3.16 
    ** Jefferies sees 20% year-over-year decrease in 2H24 EBITDA
from Saverglass based on co's FY24 forecast
    ** Jefferies says co's FY24 EBIT guidance for North America
ops implies margins in 2H24 will be down to 5.1% from 5.9%
    ** Jefferies expects co's EPS to fall by 13%, 18% and 15% in
FY24, FY25 and FY26, respectively
    ** Similarly, Citi lowers EBIT forecast for co between 8-14%
across FY24-FY26
        ** Co extending losses from previous session
  
    ** Co posted lower FY earnings forecast on Tuesday in its
trading update
    ** Stock has fallen 10.8% this year as of last close

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))