3 Nov 2014

Analyst lifts Ebos price target

1:04 pm on 3 November 2014

Ebos is trading above expectations and its near $58 million pet food purchase announced on Friday with increase annual per-share earnings about 2 percent, an analyst says.

Chelsea Leadbetter of Forsyth Barr has lifted her 12-month price target for Ebos shares by 25 cents to $10.40.

stock exchange ticker tape

Photo: PHOTO NZ

Ebos' new chief executive Patrick Davies told Friday's annual shareholders' meeting first-quarter trading was about 10 percent higher than the same three months last year.

Ms Leadbetter said that was a solid outcome for the pharmaceuticals and medical supplies company, particularly in light of the challenges of ongoing health sector reforms.

As a result of that guidance, she has raised her forecasts for full-year net profit in the years ending June 2015 and 2016 by 4 percent.

Ms Leadbetter is now expecting a near $98 million profit in 2015, up from $89 million the previous year.

She said the BlackHawk pet food purchase was a good strategic fit with Ebos' existing animal care operations.

Ms Leadbetter said the pet care market is characterised by higher growth than the economy generally and attractive margins.