Morgan Stanley lowered its price target on Amcor Plc (NYSE:AMCR) to $42.00 from $44.00, maintaining an Equalweight rating. The stock trades at $39.10, near its 52-week low of $36.67, as analysts reassess earnings prospects.
The firm updated its model after Amcor's Q3 2026 results. Morgan Stanley cut its EBIT forecast by 2% for 2026 and 1% for both 2027 and 2028.
EPS forecasts were reduced by 1% for 2026 and 2% for 2027 and 2028. The new target reflects these lower projections.
The valuation uses equal weighting of three approaches: 9x P/E on 2027 EPS ($38.44), EV/EBIT sum-of-the-parts ($39.58), and DCF with 8.1% WACC ($49.47).
Morgan Stanley applies EV/EBIT multiples of 11.7x and 11.4x to flexible packaging for 2026 and 2027, and 10.5x and 10.0x to rigid packaging.
Amcor reported Q3 2026 EPS of $0.96, meeting estimates. Revenue of $5.91 billion beat the $5.71 billion consensus.
