Market Wrap - Stock Pick — Adcock Ingram

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Steven Schultz from Momentum chose Adcock Ingram as his stock pick of the day..

"I'm going with a Adcock Ingram, it's a great pharmaceutical company with a very strong balance sheet on a pier relative basis and we know that they're certainly not overextended from a gearing perspective and we've seen that hurt their competitors. It has had a very decent set of results earnings and their headline earnings operating profits both up double digits in the most recent results. They have lot of free cash flow coming and they do not have a lot of reliance on government although they did just win a decent slice of the anti retroviral government tender of about 12%. They've got a great portfolio including the likes of Citro-soda and we've seen Bioplus, Panado all going up double digits. I think they have a good portfolio and we've got a target price of 72 which means it implies about a 16 percent return over the next twelve months which we think is pretty decent."
9 Sep 2019 2AM English South Africa Business · Business News

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