Australia's Orora hits 3-week low after Citi cuts PT, FY25 & FY26 earnings estimates

Orora

02/08/2024 06:42

(Adds share moves in bullets 1 and 2)
    ** Shares of Australia's Orora Ltd  ORA.AX  down as much as
5.3% to A$1.95, their lowest level since July 12
        ** Shares of co on track for their worst day since June
14, if losses hold
  
    ** Analysts at Citi cut price target on Australia's Orora
Ltd  ORA.AX  to A$2.30/shr and lowers rating to "neutral" on
uncertain outlook
    ** Brokerage cuts EBIT expectations for the company by
around 5% through FY25 and FY26
    ** Adds packaging company's end markets are still declining
    ** As a result, we estimate ORA will find it hard to grow
earnings in FY25 (or it will be materially 2H weighted) - Citi
    ** Given the uncertain outlook combined with a stretched
balance sheet, we reduce our recommendation to Neutral -
brokerage
    ** Nine out of 14 analysts rate the stock "buy" or higher,
five "hold"; their median PT is A$2.57 – LSEG data
    ** Stock has fallen 20.8% YTD, as of last close

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