Citi sees low impact of potential Chinese cognac tariff on Australia's Orora

Orora

16/06/2024 23:48

** Citi says Orora's  ORA.AX  exposure to potential Chinese
cognac tariff appears to be quite low
    ** Last week, French cognac producers raised concerns over
the results of a Chinese probe into European cognac imports,
after the European Commission imposed tariffs on imports of
Chinese electric vehicles
    ** Brokerage says the packaging company's direct China
imported cognac exposure may be ~1%-2%, given the proportion of
cognac in the group's profit
    ** Citi estimates a complete ban on French cognac could
produce a 1%-2% profit headwind for Orora
    ** Nine of 14 analysts rate the stock "buy" or higher and
five "hold"; their median PT is A$2.59 – LSEG data
    ** Stock has fallen 24.8% this year, as of last close

 (Reporting by Sherin Sunny in Bengaluru; Editing by Lisa
Shumaker)
 ((Sherin.Sunny@thomsonreuters.com))