Morgan Stanley and Macquarie cautious on Orora's Saverglass acquisition

Orora

15/12/2023 02:11

** Analysts at Morgan Stanley and Macquarie expect
Australia's Orora  ORA.AX  to report softness in the premium
spirits sector after its completion of the Saverglass
acquisition
    ** Macquarie maintains rating of "Outperform" but reduces
price target to A$3.30/shr from A$3.40/shr
    ** Morgan Stanley says recently upgraded the packaging firm
to "Overweight", maintain PT of A$3.50/shr
    ** Macquarie sees prolonged customer destocking or softness
in consumer demand beyond early CY24 as risks to ORA's
announcement of Saverglass EBITDA for the remainder of FY24 is
expected to be broadly in line with EBITDA run rate of the
proforma LTM to June 2023 - around 168 mln euros ($184.51 mln)
    ** Morgan Stanley sees unsuccessful acquisition integration
and execution, as well as rising energy costs in Australia as
risks to ORA's share price going forward
    ** Stock down 3.7% YTD as of last close

    

($1 = 0.9105 euros)

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((Shivangi.Lahiri@thomsonreuters.com;))