Davy Research

UDG Healthcare plc

Unrelenting Delivery of Growth
Pharma and healthcare
UDG Healthcare plc

DAVY VIEW

The UDG Healthcare investment thesis is a potent combination of structurally high organic growth and balance sheet capacity for investment that is potentially equivalent to 35% of the group’s market capitalisation. The key question, in our view, is management’s ability to deploy capital; the track record on this front is excellent. The three key areas of investment over the past five years generated ROCE of 16-24% last year. Do not be put off by headline valuation multiples, which are diluted given the current capital structure. We set a price target of £9.5, suggesting at least 15% upside, and reiterate our ‘Outperform’ recommendation.

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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • UDG Healthcare plc

    Closing Price: 814p

  • RATING 18/05/17

  • PREVIOUS RATING N/A

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