Citi has revised down earnings-per-share forecasts for Ansell, citing late deployment of acquisition capital and an extension of the buyback period.
Earnings-per-share forecasts fall -1% in FY19, -13% in FY20 and -6% i n FY21.
The broker expects organic growth to continue at roughly 8%. Risks remain given weakness in the global manufacturing PMI and in the EU auto sector, but Citi says the stock is trading at fair value and expects a degree of stability over the next year.
Buy rating retained and target price rises to $31 from $28.50.
Sector: Health Care Equipment & Services.
Target price is $31.00.Current Price is $26.84. Difference: $4.16 – (brackets indicate current price is over target). If ANN meets the Citi target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
