Citi retains 'buy' rating on Australia's Orora, cuts target price

Orora

19/02/2024 20:17

** Citi retains "buy" rating on Australia's Orora  ORA.AX ,
cuts target price to A$3.16 from A$3.28
    ** Shares of packaging co fell 2.3% on Monday 
    ** Citi remains optimistic on Orora, saying its execution
was strong despite the challenging environment, with negatives
only depreciation and amortization (D&A), and interest
    ** Increase in D&A and interest have moved Citi's NPAT (net
profit after tax) estimates down ~10%-14%
    ** Brokerage sees FY24 estimates as a low point in earnings
and expect strong compound annual growth rate over the medium
term
    ** Analysts also "remain positive given what we see as a
trough in earnings and strong operational result"
    ** Eight of 13 analysts rate the stock "buy" or higher, five
"hold"; their median PT is A$3.21– LSEG data
    ** Stock up ~5% YTD

 (Reporting by Neha Soni in Bengaluru; Editing by Lisa Shumaker)
 ((Neha.Soni@thomsonreuters.com))