Macquarie notes a benefit from price increases that were over and above the amount required to pass through costs, primarily related to examination and single-use gloves, represented around 60% of the increase to gross profit in FY21.
Hence, based on recent trends, the broker envisages downside risk to consensus expectations.
Given the risk, and with revised earnings forecasts that sit well below consensus, Macquarie downgrades to Underperform from Neutral. Target is lowered to $32.00 from $39.00.
Sector: Health Care Equipment & Services.
Target price is $32.00.Current Price is $33.84. Difference: ($1.84) – (brackets indicate current price is over target). If ANN meets the Macquarie target it will return approximately -6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
