Ansell has announced the acquisition of US industrial glove manufacturer, Ringers Gloves, for US$70m. UBS incorporates the acquisition into forecasts and updates for the share buyback, resulting in upgrades to earnings per share of 0.8% in FY19 and 1.6% in FY20.
The broker expects the company to report a slowdown in European manufacturing activity and sluggish growth in healthcare when it reports on February 18.
UBS maintains a Neutral rating and raises the target to $24.50 from $23.80.
Sector: Health Care Equipment & Services.
Target price is $24.50.Current Price is $23.20. Difference: $1.30 – (brackets indicate current price is over target). If ANN meets the UBS target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
