Operating through Australasia and North America, Orora Ltd (ORA) is an Australian-based company engaged in manufacturing and distributing packaging and visual solutions to customers. ORA provides packaging and visual communications solutions, from the design and manufacture of packaging products such as glass bottles, beverage cans, and corrugated boxes to point of purchase displays and signage.
“Orora Ltd (ORA) is a solid, defensive business with a healthy balance sheet and an experienced management team,” Raymond said.
“The company also has a good track record of exceeding market expectations, with the last four EBIT results beating consensus forecasts by an average of 5%.
“This has mostly been driven by benefits from business optimisation initiatives in North America, which we think still have some way to go.
“Lower commodities prices (e.g., aluminium and soda ash) should also benefit margins in Australasia.
“We have added ORA to our Morgans best stock idea list,” Raymond said.
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