NHF – Morgans rates the stock as Hold

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The company will acquire corporate health insurer, GU Health, which services over 34,000 policy holders across 260 corporate clients.

Morgans believes the acquisition makes sense strategically. Earnings per share estimates are upgraded by 1-4% for FY18 and FY19.

The upgrades are slightly offset by some minor changes to investment income forecasts. The acquisition appears around 4.5% accretive after synergies. Target is raised to $5.82 from $5.58. Hold rating retained.

Sector: Insurance.

Target price is $5.82.Current Price is $5.77. Difference: $0.05 – (brackets indicate current price is over target). If NHF meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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