Amcor (AMCR) is expected to face pressure due to declining packaging demand and lower-than-expected synergies from its acquisition of Berry Global, RBC Capital Markets said in a Tuesday report.

RBC analysts initiated coverage on Amcor with a sector perform rating and a price target of 13.60 Australian dollars ($9 per share), implying about 8% upside from current levels.

The firm expects earnings in fiscal 2026 and 2027 to come in 5% to 6% below consensus, citing weaker packaging volumes and lower-than-anticipated synergy benefits. Consumer packaged goods customers are prioritizing "value over volume," with demand pressures stretching across North America, Europe and Asia, RBC said.

Amcor's debt load has climbed following its $15.6 billion deal for Berry, leaving the company with $13.3 billion in net debt and leverage of roughly 3.5 times and it also faces the challenge of refinancing $3.2 billion of debt in 2026. Planned asset sales are expected to be slower to complete and have a "modest" impact on leverage, the report said.

Price: 8.24, Change: -0.02, Percent Change: -0.18