Mayne Pharma’s result was a big improvement on a weak previous period but was currency-assisted and disappointed nonetheless. Specialty brands stood out in revenue terms, the broker notes, but costs were elevated for various reasons.
Factoring in higher costs and adjusting for FX forecasts see the broker downgrade earnings forecasts by -11%. Target falls to 78c from 83c. Neutral retained, on a balance of an opportunity to improve operating leverage but little chance of re-rating until there is evidence of such.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $0.78.Current Price is $0.74. Difference: $0.04 – (brackets indicate current price is over target). If MYX meets the UBS target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
