Fresh guidance provided by Ansell at its AGM implies a 40/60 skew in earnings to the second half compared to a 45/55 average over FY15-19. Macquarie sees price as a more relative factor in the 2H and on current dynamics, retains Sell.
The broker had previously highlighted the benefit of price increases over and above dollar cost pass-through, primarily for examination and single-use products, based on recent trends now sees downside risk to FY22 guidance and consensus expectations.
Target falls to $30.70 from $32.00.
Sector: Health Care Equipment & Services.
Target price is $30.70.Current Price is $30.52. Difference: $0.18 – (brackets indicate current price is over target). If ANN meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
