Analysts upbeat on APM Human Services International's $657 mln contract wins

APM Human Services International

21/03/2024 23:06

(Adds Morgan Stanley commments)
    ** Analysts see Australia's APM Human Services International
 APM.AX  to benefit from recent contract wins
    ** Health and human services provider says it won new
contracts worth A$1 bln ($656.90 mln) for its North American
segment in FY24 YTD
    ** Morgan Stanley says new contracts reinforce APM as a
market leader delivering outcomes at scale
    ** Morningstar ups its revenue forecasts for APM by 5% on
average over next 10 years
    ** "North American market primarily operates on lower-margin
cost-plus and cost-reimbursement contracting models... our
earnings estimates only increase marginally" - Morningstar
    ** Morningstar adds a $1.2 bln takeover by CVC Asia Pacific
is still "the most likely outcome" for APM
    ** APM stock up 37% YTD, as of last close

($1 = 1.5223 Australian dollars)

 (Reporting by Aaditya Govind Rao in Bengaluru)
 ((Aaditya.govindrao@thomsonreuters.com;))