HRC - Hill-Rom: Deep Value Proposition At A 30% Discount To Peers
- Hill-Rom Holdings has enjoyed a strong 2H 2020, with sequential growth across quarters, and a mild recovery from Covid-related headwinds.
- Moderate stability in bed demand, strength in international markets, and penetration in emerging markets have driven top-line growth in Q4.
- Management is confident in mid single-digit growth for 2021, and we believe that ~400bps Covid-19 tailwind may drive bed revenues from Europe's situation.
- Shares trade at a reasonable discount to peers, and considering our modelling, Hill-Rom presents as a value proposition for longer-term players.
- We are bullish on the long-term outlook of the company and believe that the foreseeable headwinds are near-term only.
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Hill-Rom: Deep Value Proposition At A 30% Discount To Peers