2359 GMT - Ansell's first-half result may give investors the mistaken impression that it is a growth stock, Morgans analyst Derek Jellinek says. He acknowledges that the protective garment manufacturer's performance was stronger than he had anticipated, but tells clients in a note that it was largely driven by acquisition gains, cost reductions, and one-off items. Customers have now finished restocking after running down inventory built up during the Covid-19 pandemic, he says. This spells an end to what he calls "easy gains" by Ansell's healthcare unit. With tariffs now a factor and potential of sales leakage from a change in processes, Jellinek is cautious. Morgans raises its target price by 23% to A$33.38 but keeps a hold rating on the stock, which is down 2.75% at A$36.73. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
February 10, 2025 18:59 ET (23:59 GMT)
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