Amcor (AMCR) faces investor scrutiny after missing its fiscal Q4 free cash flow target despite delivering an earnings beat and returning to volume growth across packaging and containers, RBC Capital Markets said in a report.
"The outlook remains challenging and organic revenue and earnings growth is difficult," RBC said, noting that EPS guidance for the September quarter of $0.92 to $0.98 trails market expectation by 6% to 12%.
Free cash flow in Q4 was $1.396 million, 15% below company guidance of $1.64 million, and net leverage remains high, the report said.
RBC reduced its full-year adjusted EPS estimate to $4.05 from $4.14 and left its fiscal 2028 outlook unchanged.
RBC maintained its sector-perform rating on Amcor stock and kept its price target of 58 Australian dollars ($40.94).
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