United Drug share price up 60% in year
Irish healthcare outsourcing group United Drug issued a positive trading statement this week for the first quarter of its financial year.
Earnings per share are expected to rise by between 5 per cent and 8 per cent for the year to the end of September 2013. The Dublin-based company has had a good 12 months. Five acquisitions over the past year or so have helped to give the stock momentum, with the share price up about 60 per cent since February 2012.
Some of this appreciation can be put down to the fact that United Drug is now listed on the FTSE 250 in London, having decamped from the Irish Stock Exchange in December.
Not that everyone is convinced by the business strategy. Investec recently initiated coverage with a “sell” recommendation, citing concerns about the execution risks involved with integrating the various acquisitions.
United Drug has yet to add Investec to the list of analysts covering the stock on the investor relations page of its website. A mere oversight, no doubt.