Amcor (AMCR) After The Berry Deal Why The Stock Still Looks Undervalued

Amcor (AMCR) has drawn investor attention after recent price moves, with the stock up 0.5% over the past day but down about 4% over the past week.

For Amcor, the recent share price pullback sits against a mixed backdrop, with the 30 day share price return down 7.8% but the 90 day share price return still up 4.2%. The 1 year total shareholder return of 7.4% points to steadier gains over a longer stretch.

Compare Amcor's recent pullback with other packaging and materials stocks under pressure by scanning our hand picked 11 resilient stocks with low risk scores, which aim to balance resilience with return potential.

For Amcor, the question now is whether this recent dip reflects a change in the underlying packaging business or just a reset in sentiment. The valuation numbers start to draw that line.

Most Popular Narrative: 15% Undervalued

On the most followed view of Amcor, a fair value of $49.93 sits above the latest close at $42.46, which frames this pullback as a discount rather than a premium.

The integration of Berry Global with Amcor is expected to yield $650 million in synergies by fiscal 2028 (with $260 million in fiscal 2026). These are primarily anticipated to come from cost reduction, procurement optimization, and operational efficiencies, which are expected to support sustained EPS and margin expansion.

See why 40 investors see Amcor as 15% undervalued.

Result: Fair Value of $49.93 (UNDERVALUED)

Still, weak volumes and high leverage at 3.5x leave Amcor exposed if portfolio reviews disappoint or if synergy delivery from the Berry Global integration stalls.

Find out about the key risks to this Amcor narrative.

Next Steps

Mixed signals around Amcor can feel unclear, so consider acting promptly and testing the story against your own expectations by weighing its 3 key rewards and 2 important warning signs.

Looking for more investment ideas beyond Amcor?

If Amcor has you thinking about what else could fit your portfolio, do not wait on ideas that match your own risk, income, and value goals.

• Target long term compounding by scanning a curated mix of high quality value opportunities through the 34 high quality undervalued stocks.
• Boost potential income streams by reviewing companies that feature resilient payouts in the 6 dividend fortresses.
• Protect your capital first by focusing on financially steady businesses inside the list of solid balance sheet and fundamentals (22 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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