Citi retains 'buy' rating on Australia's Orora despite weaker results forecast

Orora

12/01/2024 04:08

** Citi retains 'buy' rating on Australia's Orora  ORA.AX 
with PT of A$3.28/share
    ** Brokerage says it retains rating for the packaging co
despite expecting a soft 1H24 result due to "tough global
spirit/wine volumes" in the last 6 months
    ** After some near-term noise, we expect a higher stock
price in 12 months - Citi
    ** Stock marginally up 0.8% to A$2.630
    ** Analysts at Citi say "timing of the Saverglass deal seems
unfortunate" as the 2HCY24 global spirit volumes were soft, and
destocking exacerbated weak consumer demand
    ** Brokerage estimates an earnings trough, but says
normalising demand patterns, new packaging can lines and easing
China wine tariffs should drive EPS higher from here
    ** Stock ended 3.7% lower last year


    

 (Reporting by Neha Soni in Bengaluru)
 ((Neha.Soni@thomsonreuters.com))