Amcor (ASX:AMC) is seeing a modestly positive volume trend of up to 1% continuing into the September quarter, with consumer packaged goods customers focused on volume initiatives, according to a Friday Jefferies note.

Jefferies said that recent sentiment has weakened due to Middle East tensions and rising resin costs, increasing inflationary concerns, while Amcor has successfully passed through higher raw material costs, but resin price volatility could make its free cash flow targets harder to achieve.

The investment firm believes that the company is currently at full valuation until it shows sustained low-single-digit volume growth.

Jefferies kept a hold rating on Amcor with a price target of AU$64.17.

The company's shares fell 1% in recent Monday trade.