New products should spur Embecta

Article Excerpt

EMBECTA CORP. $11 is still a buy for long-term gains. The company (Nasdaq symbol EMBC; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 58.4 million; Market cap: $642.4 million; Price-to-sales ratio: 0.6; Dividend yield: 5.5%; TSINetwork Rating: Average; www.embecta.com) makes insulin syringes, insulin pens and related products for the treatment of diabetes. Embecta is also expanding beyond diabetes products. For example, it’s now making needles for GLP-1 weight-loss drugs. That could add $100 million to its annual revenue of $1.1 billion. As well, a new restructuring plan should cut between $60 million and $65 million from its annual costs. Embecta will probably earn $2.84 a share in the fiscal year ending September 30, 2025, and the stock trades at 3.9 times that estimate. That’s a reasonable p/e as the company earmarks 8% of revenue to research. The $0.60 dividend looks secure, and yields 5.5%. Embecta is a buy. buy…