The Searle Company (SEARL): “BUY” Intact with a target price of PKR 505/ share – By AHL Research
<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We reiterate our BUY stance on SEARL with a revised
DCF-based Jun’18 target price of PKR 505/share, implying an upside potential of
63% from current levels. Our investment thesis is premised on i) revenue growth
expected at a 4-yr CAGR of 21% amid increase in prices along with volumetric
growth, and subsequently ii) 4-yr projected earnings CAGR at a robust 15%. We
expect earnings in FY18 to clock-in at PKR 2,920mn i.e. EPS of PKR 15.81. The
stock is currently trading at a FY18 PE of 19.7x</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Over the years, Searle has strengthened its therapeutic
areas like cardiovascular, cold & cough, diabetes, infant formula,
pro-biotic and antibiotics while the company f...
