We have updated our forecasts for the two acquisitions completed in July and the recent trading update, upgrading EPS by 1-3%. We continue to be attracted to the long term story around UDG, with the track record of acquisitions having been exemplary so far. These attributes are no longer hidden under a bushel however and, with the shares trading on ~30x P/E, a 30%+ premium to its closest peers, UDG probably needs to grow into its valuation. We stay at Hold with a TP of 770p.
15 Aug 2017
N+1 Singer - UDG Healthcare - Acquisition-led upgrade momentum building
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N+1 Singer - UDG Healthcare - Acquisition-led upgrade momentum building
- Published:
15 Aug 2017 -
Author:
Chris Glasper -
Pages:
5
We have updated our forecasts for the two acquisitions completed in July and the recent trading update, upgrading EPS by 1-3%. We continue to be attracted to the long term story around UDG, with the track record of acquisitions having been exemplary so far. These attributes are no longer hidden under a bushel however and, with the shares trading on ~30x P/E, a 30%+ premium to its closest peers, UDG probably needs to grow into its valuation. We stay at Hold with a TP of 770p.