Bank of America Reaffirms Buy on Amcor (AMCR), Raises Target to $56

Amcor plc (NYSE:AMCR) is included among the 13 Cheapest Dividend Aristocrats to Invest in.

On February 4, Bank of America lifted its price recommendation on Amcor plc (NYSE:AMCR) to $56 from $48.40. The firm also reiterated its Buy rating on the stock. After going through the fiscal Q2 numbers, analysts slightly trimmed their EPS estimates, now modeling $4.00 for FY26 and $4.30 for FY27, down modestly from prior forecasts of $4.06 and $4.34.

On Amcor’s earnings call for fiscal Q2 2026, CEO Peter Konieczny spoke about the impact of the Berry acquisition in practical terms. He suggested the deal has meaningfully changed the company’s scale and positioning, turning it into a stronger global player in consumer packaging and dispensing solutions. In his view, the integration is not just about size but about building a more competitive platform.

Quarterly results were largely in line with what management had outlined a few months ago. Nothing dramatic, but steady execution. Leadership indicated the company is still moving toward its full-year targets without needing to reset expectations. Adjusted EPS rose 7% in the quarter and 14% for the first half of the fiscal year. The lift came mainly from cost synergies tied to the acquisition, which helped cushion softer volumes. Synergy realization tracked at the high end of guidance, delivering $55 million in Q2 and $93 million for the first six months.

The company reaffirmed its fiscal 2026 outlook, guiding to adjusted EPS between $4 and $4.15 per share after factoring in the 1-for-5 reverse stock split. Management also expressed confidence in delivering double-digit EPS growth this year and doubling free cash flow compared with fiscal 2025. Meanwhile, the portfolio review continues. Amcor is evaluating options for roughly $2.5 billion in non-core assets, including its North American beverage business. Leadership described the process as active and ongoing, signaling that further changes could come if they strengthen the overall business.

Amcor plc (NYSE:AMCR) operates in flexible and rigid packaging, serving consumer and healthcare customers. The company focuses heavily on sustainable materials and design, positioning itself where product protection, efficiency, and environmental considerations intersect.

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