First-half net profit was ahead of estimates. Asaleo Care has upgraded guidance to the upper end of the $84-87m range for underlying EBITDA.
The company increased market share across most categories in the first half, supported by a combination of increased brand investment and local manufacturing.
However, Macquarie notes there are stranded costs continuing from discontinued operations and businesses that were previously offloaded. Neutral retained. Target is raised to $1.10 from $1.02.
Sector: Household & Personal Products.
Target price is $1.10.Current Price is $1.05. Difference: $0.05 – (brackets indicate current price is over target). If AHY meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
