Last week, Amcor plc (ASX: AMC) completed its acquisition of Berry Global.
Amcor develops, manufactures, and sells various packaging products for food, beverage, pharmaceutical, medical, home and personal care, and other products worldwide.
Last November, Amcor agreed to acquire Berry Global Group in an all-stock deal valued at $8.4 billion.
Under the agreement, Berry shareholders received 7.25 Amcor shares for each Berry share, resulting in Amcor shareholders owning approximately 63% of the combined company and Berry shareholders owning 37%.
The deal was finalised last week, and here is what broker Macquarie is projecting for the company now the deal is complete.
What are Macquarie saying about Amcor PLC
Amcor shares are down 5.45% over the last year, however Macquarie tips a turnaround in the next 12 months.
For context, S&P/ASX 200 Materials (ASX:XMJ) is down 9.57% over the same period.
At the time of writing, Amcor shares are trading at $14.23 each, however Macquarie has listed the shares with an "outperform" rating and a 12 month price target of $18.16.
This indicates a 27.6% upside.
The report from Macquarie said:
Early Berry merger completion means AMC can hit the ground running on synergies. $260m or 40% of Berry synergies expected to be delivered in FY26 (as opposed to an exit rate). Latter to be 12% EPS accretive (9cps) in isolation relative to FY25 guidance.
Essentially, Amcor completed its merger with Berry earlier than expected, which Macquarie believes will allow it to start benefiting from cost savings (synergies) right away.
However, the broker also noted that demand in North America has been weaker and "is likely to persist in the near term."
How much can the share price rise?
Macquarie isn't the only broker tipping a bounce back in the next 12 months for Amcor shares.
Last week, Morgan Stanley upgraded Amcor shares to an overweight rating and increased its 12-month price target for the ASX 200 dividend share by 27% (courtesy of The Australian Financial Review).
Elsewhere, Bell Potter has a price target of $17.14 and online brokerage platform SelfWealth has an average price target of $17.52.
