Analyst Christian Glennie of Stifel Nicolaus reiterated a Buy rating on Uniphar PLC (UPR – Research Report), boosting the price target to €4.75.
Christian Glennie has given his Buy rating due to a combination of factors that highlight Uniphar PLC’s strong growth potential and undervaluation. The company has recently completed a €35 million share buyback, which has led to an increase in the adjusted EPS forecasts for FY25 and FY26 by 2%, aligning with the expected accretion from the buyback. This adjustment results in a projected 13% growth in adjusted EPS for FY25, indicating robust organic growth prospects.
Additionally, Uniphar’s adjusted EBITDA is anticipated to reach €170 million by 2028, representing a compound annual growth rate of approximately 8%. The potential for achieving a higher organic contribution towards the EBITDA target suggests further upside. Moreover, the valuation of Uniphar’s Medtech division, when compared to a similar business like Asker Healthcare Group AB, underscores the deep value and growth potential not yet reflected in Uniphar’s current market price. Despite a recent 30% stock price increase, Uniphar remains attractively valued at 7.0x EV/EBITDA, offering a significant discount compared to its peers.
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