Cordlife

Cordlife: The baby boosters package will see govt spending on pro-family measures rise from $1.6b a yr to $2b, and offers bigger baby bonuses, new health care coverage for babies, subsidies for fertility treatments and paternity leave to encourage fathers to play a bigger part in raising their babies. DBSV, in a recent Strategy piece, also tips Cordlife as a beneficiary of the pro-family initiatives by the govt. The stock trades at 15x FY13e P/E, though the house believes a target of 16x values it closer to peers. This translates to a fair value of $0.65. The stock is +2.5% at $0.62.