BUZZ-Morningstar lifts fair value estimate for Australia's Orora on volume outlook

Reuters
Aug 15
BUZZ-Morningstar lifts fair value estimate for Australia's Orora on volume outlook

Aug 15 (Reuters) - ** Analysts at Morningstar raise fair value estimate of Australia's Orora ORA.AX by 7% to A$3 on time value of money and minor upgrades to longer-term volume estimates

** Glass bottles producer posted FY25 EBIT of A$262.1 mln ($170.21 mln), up 9.5% YoY, driven by contribution from Saverglass and increased demand for Australian cans - Morningstar

** Morningstar says encouraged by co's strategic investments to improve margins, including shutdown of underutilized Australian glass furnace and investing in higher-demand aluminum can production

** Investment research firm expects long-term mid-single-digit sales growth in the Australian can business

** However, Morningstar notes lower customer demand and a shift to wine and champagne as headwinds to Saverglass's near-term sales and EBIT margins

** ORA last closed up 5.2% at A$2.220, highest since February 21; YTD down 9.8%

($1 = 1.5399 Australian dollars)

(Reporting by Keshav Singh Chundawat in Bengaluru)

((Keshav.SinghChundawat@thomsonreuters.com;))

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