BTIG stays Buy on Embecta (EMBC) following Owen Mumford acquisition announcement

BTIG analyst Marie Thibault reiterated a Buy rating and $25.00 price target on Embecta (NASDAQ: EMBC)

The analyst commented, "This morning, Embecta announced that it will acquire Owen Mumford Holdings Limited (Private). The deal consists of a £100M upfront payment in cash and up to an additional £50M in performance-based milestones related to sales of the Aidaptus auto-injector platform in the three years post-close. EMBC intends to finance the transaction with proceeds from its revolving credit facility. We note that EMBC does not currently have its own auto-injector and this acquisition would expand its product offering to a close adjacency. Owen Mumford is a UK-based manufacturer specializing in a variety of drug delivery products and medical devices, including but not limited to safety pen needles, syringes and needles, autoinjectors, lancets, and devices for both capillary and venous blood collection. These devices are mainly used for drug delivery, blood sampling, ophthalmology, podiatry, and pelvic health. For FY25, Owen Mumford generated £69.4M in net revenue, ~80% of which was from the U.S. and the UK. EMBC expects the acquisition to contribute to revenue growth in FY27 and beyond, generating HSD ROIC by the fourth year. The acquisition is also expected to be immaterial to FY27 adj. operating income and accretive thereafter as well as to be dilutive to FY27 adj. net income, immaterial to FY28 adj. net income, and accretive thereafter."

For an analyst ratings summary and ratings history on Embecta click here. For more ratings news on Embecta click here.

Shares of Embecta closed at $8.86 yesterday.

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