Update shared on 11 Nov 2025
Fair value Increased 1.82%Analysts have raised their price target for Ansell from A$36.41 to A$37.07. They cite continued confidence in the company's valuation despite industry-wide concerns about tariffs and modest improvements in revenue growth and profit margin projections.
Analyst Commentary
Bullish Takeaways
- Bullish analysts view Ansell’s stock price as undervalued and suggest that the current market discount more than compensates for risks such as potential tariffs.
- Confidence remains high in the company’s ability to maintain positive valuation metrics, even without upward revisions to underlying forecasts.
- Stable price targets reflect expectations that modest improvements in revenue growth and margins may support share price gains over the medium term.
- Ongoing upgrades to "Buy" ratings indicate that analysts see attractive risk-reward prospects based on both current fundamentals and future growth potential.
Bearish Takeaways
- Bearish analysts remain cautious about the impact of tariffs on healthcare personal protective equipment and the broader industry environment.
- There is limited optimism around near-term earnings upgrades, with price targets left largely unchanged alongside the ratings adjustments.
- Concerns persist regarding the pace of revenue growth and the ability to materially improve profit margins in a challenging market.
What's in the News
- Ansell has opened its first Ansell Xperience & Innovation Studio (AXIS) in Alpharetta, Georgia. This new facility provides a collaborative environment for safety innovation, education, and live product demonstrations. Plans are underway to expand with a new AXIS location in Coimbra, Portugal next year. (Company announcement)
- Ansell's Board of Directors has authorized a share buyback plan effective August 25, 2025. The company will repurchase up to 14,594,488 shares, representing 10% of its issued share capital, as a capital management initiative. The program remains valid until September 7, 2026. (Company announcement)
- Ansell is actively seeking acquisitions as part of its strategy. The company is focusing on productivity investments and greater automation in manufacturing processes to enhance growth and differentiation. (Company announcement)
Valuation Changes
- Fair Value Estimate has risen slightly from A$36.41 to A$37.07, reflecting a modest upward adjustment.
- Discount Rate increased from 7.54% to 7.79%, which indicates a slightly higher risk premium used in valuation models.
- Revenue Growth projection increased marginally from 4.80% to 4.93% per year.
- Net Profit Margin forecast is essentially unchanged, moving narrowly from 10.19% to 10.20%.
- Future Price-to-Earnings (P/E) Ratio edged up from 18.19x to 18.48x.
Disclaimer
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