The entry level in Orora was flagged at or near $3.00, the stock price has now rallied 7% and investors should consider locking in the gains.
Our main concern is the weak technical backdrop for the XJO index, combined with the recent Algo Engine sell signal on Orora.
Orora has formed a higher low at $3.00 and is now under Algo Engine buy conditions. The short-term indicators are now trending higher and buying support is building.
Orora was listed as a separate entity after being spun-off by Amcor in 2013.
The company is a leader in innovative packaging solutions, employing 5,500 people across 122 sites in 7 countries. Orora supplies a broad range of fibre, metal and glass packaging solutions, as well as packaging services including design, distribution and recycling.
Orora is expected to deliver 5 – 8 % EPS growth and the stock is now trading on a 4% yield.
Orora has formed a higher low at $3.00 and is now under Algo Engine buy conditions. The short-term indicators are still trending lower and suggest that $2.95 will provide an ideal entry level.
The FY17 result was slightly ahead of expectations and underlying EBIT rose 11% to A$302m
ORA’s ability to execute on its growth strategy should help to underpin top and bottom line growth of 5%, resulting in EBITDA in FY18 increasing from $420m to $450m.
ORA trades on a forward yield of 3.8%.