AUSTRALIA'S severe flu season is driving demand for pharmacist-administered flu jabs, but it is also sending funeral home share prices skyward, according to stockbroking firm, Bell Potter.
With more than 100 flu-related deaths already in 2019, investors appear to be in seventh heaven with the morbid industry's news.
In recent months Australia's second-biggest funeral home group, Propel Funeral Partners, has seen its stock jump 30% climbing close to $3.20 a share at the time of writing, from as low as $2.42 on 11 Jan.
Speaking to the Australian Financial Review, Bell Potter analyst Sam Haddad, noted the upward trajectory of the funeral services industry.
"The level of flu activity can provide a strong gauge of death case volumes in first-world markets, particularly those with an ageing demographic such as Australia,'' he said, setting a 12-month target price of $3.54 for Propel's stock.
Propel CEO, Albin Kurti, moved to allay investor excitement, saying "the peak season for the funeral industry is from June to October".
Rival listed undertaking group, InvoCare, has also seen its stock rise, reporting that "the improved trading we experienced in the early part of the year has continued through Q1".
InvoCare's share price hit a 12-month high of $16.18 on 28 May, having reported a 9% increase in operating earnings after tax on 14 May.
As they say, it's an ill wind that blows nobody any good.
The above article was sent to subscribers in Pharmacy Daily's issue from 31 May 19
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