Street View: Analysts bearish on Australia's Orora on Iran war hit

Orora

10/04/2026 05:17

Updates

** Australian packaging company Orora ORA.AX trimmed annual earnings forecast for French unit Saverglass and  cancelled its share buyback on Thursday, citing the impact of the Middle East war

** Co paused production at its Ras al Khaimah glass-making facility, which accounts for 15% of Saverglass' production capacity

** Shares fall as much as 7.4% to A$1.50, lowest since October 2014, after slumping ~18% on Thursday, their weakest session ever

** YTD, shares down 31.8%

ANALYSTS CUT PT; MORNINGSTAR SAYS SHARES UNDERVALUED

** ORA's FY26 EBIT forecast trimmed - 8% by Citi, 10% each by Jefferies, Morningstar

** Jefferies notes ORA's 18% downgrade to previous Saverglass forecast at midpoint, marks third cut since its acquisition in 2023 and trims price target to A$1.69 from A$2.34

** Jefferies expects Saverglass EBIT in FY27 to be 35% lower than pre-acquisition which was 100 million euros ($116.98 million) in FY23

** Morningstar says shares are undervalued and that market is overly pessimistic following a run of negative news from Saverglass since acquisition

** Morningstar lowers fair value estimate for ORA by 7% to A$2.80

** With ~15% of production capacity offline, energy uncertainty and board pausing buyback, Citi introduces "High-Risk" rating for Orora, trims PT to A$1.80 from A$2.30

($1 = 0.8548 euros)

 (Reporting by Sherin Sunny and Nikita Maria Jino in Bengaluru)

 ((Sherin.Sunny@thomsonreuters.com))