Amcor trades at 30% discount despite strong merger growth and margin gains, offering 18% return potential.

Amcor is rated a buy as it currently trades at a 30% discount to its sector despite showing strong sequential growth and margin expansion following its merger with Berry. The merger has generated significant synergies, boosting EBIT margins to 9.6% in Q4 FY2026 from 7.2% a year earlier, with a target of $650 million in annual synergies. Amcor's resilient gross margins and ability to pass through costs protect it from volatile resin prices, supporting stable cash flows and a 6.12% forward dividend yield. With projected free cash flow of $2.5 billion for FY2027 and sector multiples suggesting a 14.7% upside, Amcor offers an attractive 12-month total return potential near 18%.

Amcor's market cap stands at $19.59 billion as of Sep 18, 2026, 17:42 WIB, with a dividend yield of 6.13%, closely matching the article's cited forward yield. The stock price on Pluang is USD 42.41, showing a slight increase of 0.07% that day. Notably, all Pluang order activity is on the buy side, reflecting strong investor interest in the company amid its strategic growth and margin improvements.