Amcor (AMCR) is positioned for a potential volume inflection as the company increases capital expenditure to support organic growth, Truist Securities said in a note Monday.

The brokerage said capex is set to rise to roughly 5% of sales, up from 3% to 4% in recent years, as Amcor targets stronger volume trends ahead.

Volume growth was strongest in foodservice, pet care, and protein, while the liquids and beauty & wellness categories were flat and healthcare volumes declined, Truist said.

The firm also pointed to improving sequential trends across the Flexibles and Rigids segments, along with an anticipated working capital recovery tied to the Middle East conflict, as additional drivers of free cash flow.

Truist kept a buy rating on the stock with a price target of $51.

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