Orora (ASX:ORA) delivered an "uninspiring set of results" for fiscal 2026 amid ongoing operational headwinds at its Saverglass bottle manufacturing division, Jefferies said in a Thursday note.
The company's fiscal 2027 guidance for a decline in earnings per share, combined with further glass industry-led downside risks, will keep investors sidelined until sustained evidence of stabilization becomes evident, the investment firm said.
It lowered its earnings before interest and taxes forecasts for Orora by 5% in fiscal 2027 and by 3% in fiscal 2028, reflecting weak conditions driven by negative global pricing/mix headwinds. The EPS forecasts for Orora were downgraded by 15% and 18% for fiscal 2027 and fiscal 2028, respectively.
The company's stock is trading cheaply, but a lack of near-term conviction remains on any spirits volume recovery, with weak industry data posing ongoing risks, Jefferies said.
The equity research firm maintained a hold rating on Orora with an unchanged price target of AU$1.32, saying it prefers "other industrials with clearer volume and earnings inflection."