BUZZ-Australia's Orora gains; Morningstar initiates coverage at premium

Reuters
2024-12-17
BUZZ-Australia's Orora gains; Morningstar initiates coverage at premium

** Shares of Australia's Orora ORA.AX rise as much as 1.7% to A$2.39

** Morningstar initiates coverage on ORA with a fair value estimate of A$2.60, an 8.8% premium to stock's high on Tuesday

** Uncertainty rating for ORA is medium

** The investment research firm says it expects the premiumization of beverage containers to support profit margin growth and revenue growth above nominal gross domestic product

** Orora produces glass bottles and aluminum cans for the beverage industry

** Adds Orora benefits from a mix shift with specialised glass bottle and higher-price aluminium glass designs

** Estimates a ramp-up of revenue growth, reaching our midcycle assumption of 4% annual revenue growth from fiscal 2029

** Stock has fallen 9.6% YTD, as of last close

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com))

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