Orora Ltd
ASX:ORA
Intrinsic Value
The intrinsic value of one
ORA
stock under the Base Case scenario is
2.356
AUD.
Compared to the current market price of 2.085 AUD,
Orora Ltd
is
Undervalued by 12%.
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Fundamental Analysis
Recent volatility in input costs—particularly for paper, aluminum, and glass—could erode Orora’s already thin margins if it struggles to pass on higher costs to customers, undermining profitability and pressuring returns.
North American operations, which represent a significant portion of Orora’s overall revenue, are particularly susceptible to cyclical downturns in industrial and consumer demand. Any slowdown in U.S. manufacturing or a decline in consumer packaged goods orders could sharply reduce volume growth for Orora.
Orora faces intense competition from rival packaging providers that are pushing innovations in flexible and biodegradable alternatives. If Orora fails to differentiate via sustainable solutions, it could lose market share and be forced to compete primarily on price.
Orora’s defensible position in beverage and food packaging, buoyed by long-term supply contracts, provides a stable revenue base that is less sensitive to economic swings, supporting consistent cash flow generation.
Management’s strategic capital allocation into custom packaging, including recent investments in more automated production lines, could strengthen operational efficiency and widen the company’s cost advantage over peers in targeted markets.
Heightened global sustainability standards may create long-term tailwinds for Orora’s recyclable cans and paper-based packaging. As brand owners prioritize eco-friendly products, Orora’s existing infrastructure positions it to benefit from a shift toward more sustainable packaging solutions.
Earnings Waterfall
Orora Ltd
Wall St
Price Targets
ORA Price Targets Summary
Orora Ltd
According to Wall Street analysts, the average 1-year price target for
ORA
is 2.457 AUD
with a low forecast of 2.02 AUD and a high forecast of 2.835 AUD.
The intrinsic value of one
ORA
stock under the Base Case scenario is
2.356
AUD.
Compared to the current market price of 2.085 AUD,
Orora Ltd
is
Undervalued by 12%.
