JPM ups Ambu on balanced risks, improving business profile
15/05/2024 11:17
** J.P.Morgan upgrades Ambu AMBUb.CO to "neutral" from
"underweight" seeing more balanced risks and an improving
business profile for the Danish medical device maker
** The broker points to a turnaround in the underlying
business, with strong growth in endoscopy
** Endoscopy and urology have been good drivers of growth
for Ambu, and pulmonology is showing signs of recovery, JPM says
** The core business is also benefitting from price
increases in the near term, it adds
** JPM sees upside to the endoscopy guidance of >15% organic
growth, given the strong H1 and continuing momentum expected for
urology and endoscopy in H2
** The broker says Ambu's margin outlook is well
under-pinned (FY guidance 10-12%, H1 2024 12.2%) with continued
operating leverage and gross margin benefits from improved mix
and pricing in H2
** JPM raises target price by 13.5% to DKK 59
** The stock is up more than 9%, among top performers on the
pan-European STOXX 600 .STOXX , and on track for its best day
since November 2023 if gains hold
(Reporting by Marta Frąckowiak)
((marta.frackowiak@thomsonreuters.com))