DAVY VIEW

Uniphar is an important part of the healthcare value-chain, particularly in Ireland. All divisions are performing ahead of expectations as healthcare systems ramp up preparations to deal with COVID-19. This will also likely drive higher volumes (and costs) through Q2. In the event that non-urgent surgeries are postponed, a three-month delay could impact 2020 EBITDA by €5m, recoverable in later years. Separately, the group has ended 2019 with a net cash position of €26m, one of the strongest balance sheets across Davy’s coverage universe. The recent market sell-off leaves the stock trading on 8.0x 2020 P/E, absurdly cheap given its defensive model and net cash balance sheet.