AUB Group has reaffirmed guidance for net profit in FY22 of $70-73m. A number of acquisitions have been completed including a new broking software business.
Credit Suisse expects the strong start to FY22 will underpin the FY22 target for net profit growth through acquisitions of $1.5-2m.
The BizCover brand has launched a new direct insurance platform for small-medium enterprises in South Africa which leverages its technology.
Credit Suisse believes this should provide a good testing ground for what appears to be a long-term strategy to expand geographically. Outperform rating maintained. Target is $25.70.
Sector: Insurance.
Target price is $25.70.Current Price is $23.81. Difference: $1.89 – (brackets indicate current price is over target). If AUB meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
