In the good books
Amcor (AMC) was upgraded to Overweight from Equal-weight by Morgan Stanley. B/H/S – 4/3/0. Morgan Stanley believes Amcor's growth outlook is returning to more normal levels after a disappointing FY18. The broker expects EBIT growth of 3% as FY18 was negatively affected by rising raw material costs and challenges in the North American beverage market, as well as difficult conditions in Latin America. Most of these issues should moderate over the next 12 months. Target is raised to $15.80 from $14.80. Cautious industry view.
Regis Resources (RRL) was upgraded to Outperform from Neutral by Macquarie. B/H/S – 1/1/4. FY18 production was a record and, in isolation, FY18 could be viewed as a high point for earnings. However, Macquarie considers this overlooks the strong long-term potential. The introduction of higher-grade satellites is expected to push costs higher in FY19 but subsequently the broker expects a rapid reversion to the norm. The target is reduced to $4.90 from $5.10.