Alliance Pharma’s impressive consumer healthcare playbook underrated says RBC

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Alliance Pharma PLC (LON:APH) has transformed its exposure to consumer healthcare over the last 5-6 years, something that the market is overlooking says broker RBC.

Almost three-quarters of Alliance’s revenues now come from consumer healthcare with superior growth to legacy prescription products and helped by a playbook of internationalisation, new distribution channels, packaging and line extensions.

The switch has also reduced the exposure to risk from government pricing and regulatory decisions.

Revenues should grow by 8% over the next four years driving profits up by 12% a year, with more if the company flexes its balance sheet fully.

“Outperform with a 106p price target” is the broker’s view.

vs the FTSE250 is near the bottom of its 5-year trading range, implying that this transformation has not been appreciated by the market.

Shares rose 3.3% to 94p.

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