Ansell (ANSLF – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst David Bailey from Morgan Stanley maintained a Hold rating on the stock and has a A$33.40 price target.
David Bailey has given his Hold rating due to a combination of factors that reflect the current economic environment and its impact on Ansell’s financial outlook. The analysis considers the potential challenges posed by a weaker macroeconomic environment, including lower growth, increased inflation, and higher unemployment rates. These factors are expected to affect Ansell’s revenue and earnings, particularly in the industrial and healthcare sectors, with anticipated declines in revenue growth and EPS for the coming fiscal years.
Additionally, the introduction of US tariffs presents further downside risks, although Ansell plans to mitigate these through pricing strategies. Despite these efforts, there remains a risk to volume growth due to the slowing economy. Consequently, revenue growth assumptions have been moderated, leading to downward revisions in EPS forecasts. The price target has been adjusted to reflect these changes, resulting in a Hold rating as the best course of action given the current uncertainties.