Although the market as a whole is climbing higher today, the Orora Ltd (ASX: ORA) share price has put on a notably stronger gain.
In late morning trade the packaging company's shares are up almost 4% to $3.28.
Why are its shares higher?
With no news out of Orora today, it appears as though the catalyst for today's gain has been a positive research note out of Citi.
According to the note, analysts at the investment bank have upgraded Orora's shares to a buy rating and raised the price target on them to $3.60.
Even after today's gain, this price target implies potential upside of just under 10% for its shares.
As well as being in a strong position to capitalise on growth opportunities, the broker believes that Orora could undertake a $200 million share buyback if appropriate acquisitions are not readily available.
Either way, both options should prove to be accretive to earnings in the future.
Should you invest?
I've said it many times before and I'll say it again, I think Orora is a great buy and hold investment and a better option than industry peer Amcor Limited (ASX: AMC).
Thanks to the benefits of the Orora Visual business, organic growth, and investments in innovation, I expect Orora to deliver another solid result in FY 2018.
So with its shares changing hands at a touch under 19x estimated forward earnings, I think it is well worth considering Citi's recommendation with an investment in Orora today.
