One of the better ASX-listed industrial businesses in Amcor Limited (ASX: AMC) has been under the micro-scope of the research analysts at Macquarie Group Ltd (ASX: MQG) recently, who have come out with a favourable verdict on the global packaging business.
According to financial news wires Macquarie believes that Amcor is set to benefit from a strengthening Euro with around one third of its revenue coming out of Europe.
The analysts also noting that the major European economies are finally showing signs of returning to semi-normal levels of growth as the continent muddles through social, political, and economic problems.
Amcor earns more than 90% of its profits outside Australia while reporting and paying dividends in U.S. dollars and therefore represents a good bet for investors looking to get exposure to not just Europe, but a weaker Australian dollar generally.
Moreover, as a rigid plastics and flexibles packaging manufacturer of common household and consumer goods it provides leverage to strengthening economic growth globally including in the emerging markets.
Just today the World Bank released a report forecasting that global growth will strengthen to 2.7% in 2017 with 2.9% penciled in for 2018 thanks to trade and manufacturing "picking up".
Amcor's manufacturing businesses focused in the consumer staples space offer defensive earnings streams and I'm not surprised to see the stock climbing 0.8% to $16.18 today. The analysts at Macquarie reportedly have a $17.17 share price target on Amcor.
Thanks to its outlook, yield, and valuation it looks a business for the top of smart investors' watch lists, although ethical investors might rule it out as it is heavily involved in the manufacturer of cigarette packaging.
