Macquarie assesses that commentary from global peer Arthur J Gallagher is supportive of the investment case for Steadfast Group. The Outperform rating and $4.70 price target are retained.
Arthur J Gallagher reports organic growth through the first two months of 2Q21 is better than 1Q21 with growth across all regions, including A&NZ. This is due to improving new business trends, a small tailwind from volumes and positive policy endorsements.
The broker concludes sector operating conditions remain supportive, with additional potential M&A activity.
Sector: Insurance.
Target price is $4.70.Current Price is $4.32. Difference: $0.38 – (brackets indicate current price is over target). If SDF meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
