First-half results were softer than UBS expected. The miss was attributed to Australasia and Asia sales growth. The broker believes the medium-term growth story is intact and upgrades to Buy from Neutral.
UBS points to defensive qualities, changes in European regulations and exposure to structural growth markets as underpinning the stock. Target is reduced to $2.20 from $2.75.
Sector: Health Care Equipment & Services.
Target price is $2.20.Current Price is $1.68. Difference: $0.52 – (brackets indicate current price is over target). If CLV meets the UBS target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).
