The company has announced the acquisition of Halcyon Knights, an IT recruitment company, for $13.5m. This will increase People Infrastructure’s exposure to the sector and Morgans estimates an increase to FY20 earnings per share of 16%.
Given the attractive growth profile and undemanding FY20 PE of 12.7x the broker maintains an Add rating. Target is raised to $3.10 from $2.63.
Sector: Commercial & Professional Services.
Target price is $3.10.Current Price is $2.84. Difference: $0.26 – (brackets indicate current price is over target). If PPE meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).