Ansell will report its results on August 25. Credit Suisse forecasts EBIT of US$212m. A final dividend of US$0.30 per share is expected.
The broker is cautious about industrial growth but this is likely to be more than offset by strong demand for healthcare and single-use gloves.
While the pandemic has created unprecedented demand for PPE the broker believes the increase in demand is structural and the focus on protective equipment globally will continue even as coronavirus subsides.
Target is increased $42.50 from $36.50. Outperformed retained.
Sector: Health Care Equipment & Services.
Target price is $42.50.Current Price is $39.23. Difference: $3.27 – (brackets indicate current price is over target). If ANN meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).