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Highlights
- Citi increased its price target for Ansell to AU$38, up from AU$32.50.
- Ansell’s 1H25 adjusted EPS of 55.7 US cents beat consensus estimates by 9%.
- The company upgraded its FY25 EPS forecast and expects further earnings growth from acquisitions and cost-saving measures.
Ansell Ltd (ASX:ANN) received a vote of confidence from Citi, which raised its price target for the protective equipment maker to AU$38, up from AU$32.50. The revision follows the company’s stronger-than-expected half-year earnings and improved full-year guidance.
Earnings Beat and Upgraded Forecasts
Ansell reported 1H25 adjusted basic earnings per share (EPS) of 55.7 US cents, exceeding Visible Alpha consensus estimates by 9%. Encouraged by the performance, the company lifted its FY25 adjusted EPS guidance to 118–128 US cents, up from its previous forecast of 110–127 US cents.
Citi responded by raising its FY25–27 EPS forecasts by 3%–6%, citing higher revenue expectations, though it noted that margins could be slightly lower than previously anticipated.
Drivers of Future Growth
Citi highlighted two key factors that could support H2 earnings growth and beyond:
- The full-year impact of the KBU business acquisition, which is expected to contribute meaningfully to revenue.
- Ongoing cost-saving initiatives, which could help offset potential margin pressures.
Looking ahead to FY26, Citi believes Ansell’s EPS growth will rely on organic expansion and its ability to sustain cost efficiencies.
Market Reaction and Stock Performance
Ansell’s stock has seen sigificant momentum, rising 11.7% year-to-date as of the last close. With Citi’s upgraded price target and improved earnings outlook, investors may remain optimistic about the company's growth trajectory.
