Shares of Australian packaging company Orora Ltd plummeted 5.25% during intraday trading on Friday.

The sharp decline follows the company's decision to trim the annual earnings forecast for its French unit Saverglass and cancel its share buyback program, citing the direct impact of the Middle East war. Orora has paused production at its Ras al Khaimah glass-making facility, which accounts for approximately 15% of Saverglass' production capacity.

Several analysts subsequently cut their price targets and earnings forecasts for Orora, noting the significant downgrade to Saverglass's outlook and ongoing risks from the regional conflict. Jefferies highlighted that the magnitude of the earnings deterioration was a surprise, marking the third downgrade for the division since its acquisition in 2023.