APM Human Service's North America contract wins to derisk FY24 earnings - analysts

APM Human Services International

13/03/2023 02:37

** UBS analysts say the Australia's APM Human Services
International's  APM.AX  recent contract awards in North America
will help to derisk earnings growth in FY24 
    ** APM on March 10 announced it has been awarded contracts
worth A$150 mln ($99.24 mln) in annual revenue; UBS says
contracts reflect positive perception of APM in both the US and
Canada 
    ** Brokerage says that APM remains well-positioned for
further contract wins with the next one in the United Kingdom
    ** Analysts at another brokerage Morgan Stanley say
contracts will have little impact on 2H23 cash conversion, but
will derisk FY24 earnings
    ** Adds co has been able to displace incumbent contract
award winners for the U.S. JobCorps contracts
    ** Stock down 6.3% this year, as of last close 

    ($1 = 1.5115 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))