AUB Group reiterated guidance at its AGM September-quarter trading update, noting FY21 momentum continues to flow into early FY22.
Premium rates rose slightly higher than expected and the company was very busy on the M&A front, finalising the purchase of GibbsCorp and Vaughan & Monaghan, the portfolio merger of Hiller Marine and SURA Marine, and a string of other deals and launches.
Management is expanding its geographic ambitions beyond Australian shores, and plans wholesale brokerage investments, moving up the value chain.
Macquarie says management’s new five-year EPS targets sharply exceed the broker’s.
Outperform and $25.52 target retained.
Sector: Insurance.
Target price is $25.52.Current Price is $23.95. Difference: $1.57 – (brackets indicate current price is over target). If AUB meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
