Orora (ASX:ORA) managed costs well to-date, but broader industry headwinds suggest ongoing risk of downgrades, with little scope for a positive earnings surprise, Jefferies said in a Thursday note.

Orora reported fiscal first-half underlying earnings of AU$0.061 per share, down from AU$0.089 a year earlier. Revenue for the six months ended Dec. 31, 2025, was AU$1.13 billion, compared with AU$1.03 billion a year earlier.

Broader macro reads for alcohol continue to be extremely soft, with a combination of cyclical and structural pressures impacting both volumes and price/mix trends, Jefferies said.

The investment firm downgraded Orora to hold from buy and lowered the price target to AU$2.34 from AU$2.50.

Orora's shares fell nearly 3% in recent Friday trade.