Confident on Ansell (ASX:ANN) at current low valuation

Livewire News

Livewire

There is some valuation support emerging although there has been an increase in the risk environment and some concerns around growth. China appears to be slowing more rapidly as it attempts to rebalance its economy, resulting in falling commodity demand and weaker growth for many emerging markets and commodity exporting countries. APRA’s new capital rules are impacting bank profits and there are also signs the housing market is topping out. As such we are inclined to look overseas for value opportunities. Ansell’s (ASX:ANN) share price has come back significantly recently and now trades at a material discount to the market. It has a diversified business providing protective wear for the industrial and health segments with broad exposure across the US, Europe and emerging markets. It disappointed at its recent result around currency hedging and tax changes although there was also pressure on growth in emerging markets. It has enough organic growth with new product development, accretive acquisitions and exposure to the US economy to give us confidence at the current low valuation.


1 stock mentioned

Livewire News
Livewire News
Livewire

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.