Citi has increased its price target for Ansell to $35.50 from $33.50, while maintaining a “neutral” rating on the company’s stock. Ansell is a global leader in providing protection solutions, manufacturing medical gloves and surgical gowns, among other products. The company serves a wide range of industries, ensuring safety and protection for workers and healthcare professionals.
The broker’s decision reflects improved and sustainable margin performance within Ansell’s industrial business, which contributes half of the group’s total earnings. However, Citi noted that the healthcare segment has faced greater challenges in its recovery, with performance remaining below historical levels. Citi suggests there is potential for Ansell to build upon its recent solid performance, potentially setting new company goals.
Despite the increased price target, the neutral rating is upheld due to the stock’s elevated valuation. According to Citi analyst Laura Sutcliffe, Ansell shares are currently trading at levels close to their historical average. This valuation consideration tempers a more bullish outlook, despite positive developments in the industrial sector.
On Thursday, Ansell’s shares closed at $33.24. The raised price target indicates a moderate expectation of future growth, balanced against valuation concerns that keep the stock at a neutral rating in Citi’s assessment.
