Ansell will report its first-half results on 16 February and expects to deliver organic growth above 20%, higher than Credit Suisse’s previous forecast of 14% with unaudited earnings per share expected to be 62-68% over last year.
Credit Suisse notes the result is stronger than expected due to higher covid-led PPE demand and market share gains in both mechanical and surgical gloves.
The broker has increased its FY21 estimates by 19% and expects earnings per share of US$1.68 for the year.
Outperform retained. Target is raised to $45.50 from $45.
Sector: Health Care Equipment & Services.
Target price is $45.50.Current Price is $36.67. Difference: $8.83 – (brackets indicate current price is over target). If ANN meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).