Australia's Orora rises; Morningstar lifts fair value estimate on volume outlook

Orora

15/08/2025 01:43

Updates

** Orora ORA.AX rises 5.4% to A$2.34, highest since February 12

** Morningstar raises fair value estimate for glass bottles producer by 7% to A$3, on-time value of money and minor upgrades to longer-term volume estimates

** Notes co's FY25 EBIT rise driven by contribution from Saverglass, increased demand for Australian cans

** Says encouraged by co's attempts to improve margins, including shutdown of underutilised Australian glass furnace, investing in higher-demand aluminium can production

** Expects long-term mid single-digit sales growth in Australian can business

** However, expects lower customer demand, shift to wine and champagne as headwinds to Saverglass's near-term sales, EBIT margins

** YTD, ORA falls 5.1%

 (Reporting by Keshav Singh Chundawat and Shruti Agarwal in Bengaluru)

 ((Keshav.SinghChundawat@thomsonreuters.com;))