UBS incorporates a 10% share buyback into forecasts, after assuming no major increases in debt levels due to any significant near-term acquisitions. This is calculated to result in forecast EPS upgrades of around 7% longer term.
While the sleep business is likely to remain slightly pressured in the short term due to covid-19 and lower diagnostic rates, mask/accessory re-supply growth will remain robust, assesses the broker.
The Buy rating is unchanged. The target price is increased to $US241 from US$210.
Sector: Health Care Equipment & Services.
Current Price is $27.92. Target price not assessed.
