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.