Ansell’s FY20 result is considered strong by UBS with robust healthcare GBU performance. The Industrial GBU was impacted by covid-19 but still ahead of the broker’s estimate.
UBS expects modest FX tailwinds in FY21 and has upgraded its FY21 earnings forecast by 4%.
The broker expects growth in both divisions over the short-to-medium term led by demand for healthcare gloves and a rebound in manufacturing activity. The quantum of growth is difficult to determine, especially in healthcare and the guidance range for FY21 is wide.
Target increases to $39.00 from $38.75. UBS maintains its Neutral rating.
Sector: Health Care Equipment & Services.
Target price is $39.00.Current Price is $39.68. Difference: ($0.68) – (brackets indicate current price is over target). If ANN meets the UBS target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
