Citi says Australia's Orora will find it hard to grow earnings in FY25, cuts PT

Orora

01/08/2024 21:51

** 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 in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com))