Amcor confirmed as Strong Buy with 6.9% dividend yield and strong Q3 FY26 results beating expectations.

Amcor maintains a Strong Buy rating due to solid fundamentals, an attractive ~6.9% dividend yield, and undervalued shares despite recent price gains. The company's Q3 FY26 results surpassed expectations with 6% adjusted EPS growth and a 15.1% adjusted EBITDA margin. Portfolio optimization and divestitures could generate $2.5 billion in proceeds. Revised guidance forecasts $1.5–$1.6 billion free cash flow and 12% adjusted EPS growth, supported by $270 million in synergies from the Berry merger, while managing risks from inventory impacts and geopolitical tensions. Discounted cash flow analysis indicates the stock is undervalued even with conservative assumptions, with oil cost inflation and macro uncertainties already priced in.