Ansell Could Find Consistent Growth Hard to Deliver
Dow Jones
Yesterday
0044 GMT - Ansell's exposure to economic cycles, input-cost inflation and currency moves make it hard for the personal-protective equipment maker to deliver consistent growth, UBS analysts warn. Maintaining a neutral rating on the stock, the analysts tell clients in a note they are encouraged by Ansell's strong June-half performance but that a focus on organic revenue growth is nothing new for the company. They like Ansell's stronger-than-expected earnings guidance but see a potential second-half revenue headwind from a reduction in synthetic glove prices, pointing to a recent fall in oil-derived input costs. UBS lifts its target price 13% to 38.70 Australian dollars. Shares are up 6.3% at A$40.65.
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