Jefferies lowers PT for Australia's Orora on Saverglass deal woes

Orora

18/01/2024 20:06

** Analysts at Jefferies lower PT on Australia's Orora
 ORA.AX  to A$2.75 from A$3.10; maintain "hold" rating
    ** Says co's strategic case for acquiring Saverglass has yet
to be made and impact for overpaying for acquisitions is often
long-lasting
    ** The packaging firm in Sept. said it would acquire French
high-end glass bottle manufacturer Saverglass from private
equity firm Carlyle Group  CG.O  for A$2.16 bln($1.42 billion)
    ** Brokerage lowers EPS estimates on ORA by 18% for FY24,
11% for FY25 and 10% for FY26
    ** We estimate that it won't be until FY26-FY27 that ORA
reports EPS higher than the 23.9 Australian cents apiece it
achieved in FY23 - Jefferies
    ** Stock fell 3.7% in 2023


($1 = 1.5244 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))