Dechra Pharmaceuticals (#DPH) – EQT possible offer “substantial progress”, extension granted to 2nd June
- 2023-05-11 06:51:57
Hello Share Shifters. Given the wobbliness of the markets, it probably pays to seek out defensive shares i.e. those that can withstand the rigours of a recession. One such candidate for your attention is Dechra (DPH). This is a pharmaceuticals company that serves animals. And we all know that, in Blighty, one of the last thing people will curtail their spending on is the health of their pets.
I have shared my views before on the ‘development and marketing of veterinary products’ company Dechra Pharmaceuticals (DPH), including noting in early September that ‘maybe it is just me finding it easier to appraise future human (than animal) demand scope, but I am going to keep on avoiding this one despite the recent share price falls’. And whilst the shares have romped hugely since their IPO early this century, the stock is down almost 30% during the last six months. So is today’s c. 38 quid share price - after the publication of first half numbers - now cheap or still expensive?
I have written a few times, most recently HERE, about the ‘development and marketing of veterinary products’ company Dechra Pharmaceuticals (DPH). Whilst I remember being very impressed by it many years ago when it listed, I concluded back in late February that it may have said ‘thanks to the love of dogs (and Brexit fears)’ but it did not work for me. Since then the stock has pushed up even further although - as noted last week - insufficiently to join the FTSE-100. And the shares are down by more than 7% as I write, so what is going on?
I see that Dechra Pharmaceuticals (DPH) has continued to see a share price rise since I last wrote about the stock here in early September. Back then I concluded that it is hard to push back on ‘improving global animal health and welfare’ but it is an expensive multiple to buy this one. So what is the updated view post its first half results?
A couple of years ago I wrote on shares in Dechra Pharmaceuticals (DPH) not particularly complementarily, observing 'I would not want to be paying a 30 times P/E ratio for that...even if its range of equine, cat and other animal pharmaceutical products continues to grow'. It has taken a while, but over recent weeks the stock has broken back above this letter. So on a quiet regulatory news day...what to make of this name following the publication of its full year results today?...
Hello Share Dwellers. At the risk of repeating myself, I’ve long thought our love of pets is a money tree for those in the tame animal industry. One of my favourite pennies Avacta (AVCT) is a case in point, though its share price doggedly fails to take off and it’s also involved in human medicine. So let me suggest another company which does treatments for ailing animals...
I think Dechra Pharmaceuticals (DPH) was the first initial public offering I looked at as a junior analyst on a hedge fund many years ago. It was a bit on the small side for us if I recall, but the essential business of specialist veterinary pharmaceutical products seemed quite sensible to me. After all we love animals almost more than anything else, right?