Australia's Orora rises as Morningstar backs strong cans segment

ORORA

16/10/2026 02:17

Updates
** Shares of Australia's Orora ORA.AX rise as much as 1.9% to A$1.375
** Analysts at Morningstar maintain their fair value estimates for ORA at A$2.3, higher than last close, after shares fell following ORA's Q1FY27 trading update
** Investment research firm forecasts FY27 adjusted EBIT 19% lower than prior year, citing lower sales from Saverglass segment and higher manufacturing costs
** Believes market is too impatient with Saverglass, which has had to bear the brunt of US tariffs, cost-of-living pressures and the Middle East war
** Market sentiment bleeds onto the prospects of Orora's cans business, which Morningstar considers to have a potential moat
** Orora is among Australia's biggest can producers, having contracts with Coca-Cola KO.N , Asahi 2502.T, and Suntory 2587.T 
** Weekly, stock down 2.7%, worst weekly performance in a month
** YTD, stock down 37.7%, including the session's moves

 (Reporting by Rudrannsh Mehra & Paridhi Minda in Bengaluru)
 ((Rudrannsh.Mehra@thomsonreuters.com))