On September 26, 2018, Australian Pharmaceuticals Industries (ASX: API) was among the top losers on Australian Securities Exchange. The company didn’t come up with any news in the morning. However, Credit Suisse downgraded the stock which could be the primary reason for the strong negative momentum. The broking company’s recommendation of “underperform” from “neutral” significantly impacted the company’s stock price. In addition to this, the company’s price target was reduced from $1.63 to $1.55.
According to Credit Suisse, because of the acquisition of Clearskincare, its stock price witnessed the strong upward momentum and this momentum could exhaust after the company comes out with its results in the month of October 2018. Over the past three months, the stock price of Australian Pharmaceutical Industries has delivered a whopping return of 30.69%. As the company has targeted to enter into the skincare market, its share rose substantially. According to the company’s management, the recent acquisition would help the company to diversify its operations which could further boost the fundamentals. Thus, the management has a favorable outlook on this acquisition. The company had acquired 50.1% interest in the clinics while the entire 100% was acquired in regard to skincare product business. As far as financing of the acquisition is concerned, it has been done via new medium-term facility amounting to $65 million.
According to Credit Suisse, the investors are over-reacting and they should be more concerned about the company’s primary business activities which are witnessing challenges. The company’s retail revenues as well as pharmaceutical benefits scheme or PBS might impact its performance moving forward.
On September 26, 2018, the stock price of Australian Pharmaceuticals Industries stood at A$1.710 at the time of writing. In a single day, the company’s stock price witnessed 9.763% decline.
Australian Pharmaceuticals Limited ended with the total market capitalization of $933.15 million on September 26, 2018.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.