After a ripper day yesterday, ASX 200 healthcare share Ansell Ltd (ASX: ANN) is off the boil on Tuesday, down 0.58%.
This is likely due to the market calming down after yesterday's 10.2% lift, and the broader market also being lower today.
At the time of writing, the Ansell share price is $34.31, while the S&P/ASX 200 Index (ASX: XJO) is down 0.52%.
The ASX 200 healthcare share rocketed yesterday after the personal protective equipment (PPE) manufacturer released its FY25 report.
At its intraday peak, Ansell shares were trading at $36.37, up 16.2% on Monday. Clearly, investors were happy with the numbers.
In this article, we'll recap those results and find out how top broker Macquarie now rates this ASX 200 healthcare share.
Ansell shares rip on boosted sales in FY25
Ansell reported US$2 billion in sales in FY25, up 7.7% on FY24 on an organic constant currency basis and up 23.7% on a reported basis.
It noted that its organic basis was adjusted for the effects of acquisitions, divestments, and business exits over the year.
This included the $635 million acquisition of Kimberly-Clark Corporation's PPE business (KBU) on 1 July 2024.
The FY25 earnings before interest and tax (EBIT), before significant items, were US$282 million.
That's up 10.4% on an organic constant currency basis and up 44.3% on a reported basis.
Ansell achieved a 19.5% year-over-year increase in adjusted earnings per share (EPS) to US$1.26 a share.
That was at the upper end of its guidance range.
Looking ahead, Ansell said raised prices would fully offset the cost impact of the US tariffs.
The company implemented an initial round of price increases in June.
Further price rises will be implemented shortly based on the finalised US tariffs announced on 31 July.
Looking ahead, Ansell is guiding adjusted EPS in the range of 133 to 145 US cents for FY26.
Ansell said:
End market conditions are expected to be mixed, with solid healthcare demand offset by subdued demand in some industrial verticals. In addition, the economic effects of higher tariffs in the US remain unclear.
Against this backdrop, we anticipate constant currency sales growth from both higher volumes and tariff-related pricing.
Ansell shares will pay a final unfranked dividend of 28 US cents per share.
That's up 27.9% from the FY24 final dividend.
The company announced it would resume its on-market share buyback program in FY26.
It plans to buy back up to $200 million worth of stock.
Top broker's view of ASX 200 healthcare share
Macquarie issued a new note today on Ansell shares and the outlook for FY26.
The broker has retained a neutral rating on the ASX 200 healthcare share and raised its 12-month price target slightly to $33.50.
The Ansell share price is trading above that target today.
Clearly, Macquarie thinks this ASX 200 healthcare share is fully valued now.
In other words, the broker does not foresee any share price growth over the year ahead.
Macquarie acknowledged the "strong performance from the KBU segment" in FY25.
It also noted Ansell's "operational excellence in mitigating tariff impacts" following its share price fall.
Ansell shares fell 14% on the day the tariffs were announced in April.
That same week, the company released a statement confirming that about 43% of its revenue came from the US.
At the time, the majority of Ansell's products sold in the US were imported from Malaysia, Sri Lanka, Thailand, Vietnam, and China.
You can check out the finalised individual US tariffs for all of these countries here.
The broker commented:
FY25 EBIT was +1% ahead of our forecasts, with EBIT margin ~50bps ahead supported by improved utilisation, higher APIP savings and KBU mix benefit.
Our revised forecasts are at the mid-point of guidance of US133-145cps (MRE: US139cps), with a net neutral impact expected from US tariffs.
While we see medium-term EPS growth outlook as positive, we see this as adequately captured in the current share price.
Ansell shares price snapshot
This ASX 200 healthcare share has risen by 15.5% over the past 12 months.
