First quarter manufacturing (PMI) data has indicated the recovery continues. Separately, UBS notes an apparent trough in butadiene pricing and an increase in natural rubber latex pricing early in the second half buying period.
A recovery in industrial sales growth is implicit in forecasts and the broker retains a Neutral rating and $39 target.
Over the short to medium term Ansell is expected to sustain growth in both of its divisions. Management is targeting growth in earnings per share of between 3-12% in FY21.
Sector: Health Care Equipment & Services.
Target price is $39.00.Current Price is $38.48. Difference: $0.52 – (brackets indicate current price is over target). If ANN meets the UBS target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
