ANN – Macquarie rates the stock as Underperform

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At its 2020 Capital Markets Day, Ansell did not update on guidance but did revise medium to longer-term targets. Management believes a bulk of the virus-related surge in PPE demand will prove permanent, requiring increased capex in FY21-22 to support production capacity.

On the other hand, the broker sees reduced demand within key industrial markets, increased raw material and supply chain costs and competition as providing offsets. Underperform and $31.80 target retained.

Sector: Health Care Equipment & Services.

Target price is $31.80.Current Price is $39.86. Difference: ($8.06) – (brackets indicate current price is over target). If ANN meets the Macquarie target it will return approximately -25% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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