Ansell released a trading update that revealed organic sales growth in excess for H1, signalling EPS growth in the order of 62%-68% and with higher growth guidance for the full financial year, albeit without the usual H2 skew.
UBS analysts, in response, have increased forecasts by 4% for FY21, but only by 1-2% in following years. A stronger AUD is weighing down their valuation with the price target declining to $39.60 from $41.75. Neutral rating retained.
Sector: Health Care Equipment & Services.
Target price is $39.60.Current Price is $36.67. Difference: $2.93 – (brackets indicate current price is over target). If ANN meets the UBS target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
