InvoCare, at its AGM, has signalled another year of below-trend death rates in 2021 and another mild flu season. The company continues to emphasise revenue and customer experience instead of market share.
The first quarter has revealed improving case averages but at pre-pandemic levels, with stronger memorialisation revenue in both cemetery and crematorium business.
Morgan Stanley notes, while the business is lapping a soft comparable and the performance is therefore off a low base, consensus forecasts have baked in a meaningful rebound.
The Equal-weight rating and target of $11 are retained. Industry view: In-Line.
Sector: Consumer Services.
Target price is $11.00.Current Price is $10.55. Difference: $0.45 – (brackets indicate current price is over target). If IVC meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).