Amcor's (AMCR) Q2 earnings are likely to be of low quality due to soft consumer product goods demand, high debt levels, and rising interest costs, RBC Capital Markets said in a Wednesday research report.

Packaging volume could remain under pressure through mid-2026 amid changes to Supplemental Nutrition Assistance Program benefits, the government's take on student loans, potential healthcare premiums increase, labor market weakness, and rising usage of GLP-1 medications, analysts wrote.

RBC said its earnings estimates are 2% below consensus due to lower-than-expected volumes and synergies as well as higher interest costs, placing the targeted procurement benefits at risk, according to the note.

The brokerage said it reiterated its sector perform rating on the stock and had a price target of 68 Australian dollars ($45.59) per share.

Price: 44.34, Change: +0.24, Percent Change: +0.54