Market Wrap - Stock pick — Adcock
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Steven Schultz from Momentum chose Adcock Ingram as his stock pick of the day.
"My stock is Adcock Ingram, well known for Panado, it currently has about 65% of its revenue from prescriptions and over-the-counter meds and around 25% from hospital drug usage. It's significantly de-rated this year and went down around 29% over the past 12 months, taking it from a 33 PE to a very undemanding 9. Bidvest is currently a 51% owner and I suspect that these levels Bidvest may want to increase their stake. The extent of the price pool is definitely overdone in my opinion and assuming conservative forward earnings, our target price is R68 which is a 27% improvement from current levels. "
"My stock is Adcock Ingram, well known for Panado, it currently has about 65% of its revenue from prescriptions and over-the-counter meds and around 25% from hospital drug usage. It's significantly de-rated this year and went down around 29% over the past 12 months, taking it from a 33 PE to a very undemanding 9. Bidvest is currently a 51% owner and I suspect that these levels Bidvest may want to increase their stake. The extent of the price pool is definitely overdone in my opinion and assuming conservative forward earnings, our target price is R68 which is a 27% improvement from current levels. "
