After six days of trading halt, Ebos Group has abandoned its attempt to acquire vet business Greencross. Ord Minnett believes it is prudent for Ebos to be disciplined in its growth strategy and capital allocation.

A trading update for the first four months of FY24 highlighted resilient margins. The broker believes this is due to cost control and acquisitions in higher-margin medical technology offsetting cost pressures in labour and freight.

Believing the industry will remain challenging, Ord Minnett retains a Lighten rating. Fair value rises to $28.50 from $28.00.

Sector: Health Care Equipment & Services.

Target price is $28.50.Current Price is $33.02. Difference: ($4.52) - (brackets indicate current price is over target). If EBO meets the Ord Minnett target it will return approximately -16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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