Morningstar sees APM Human Services International's $1.2 bln buyout to go through

APM Human Services International

21/03/2024 21:20

** Analysts at Morningstar see Australia's APM Human
Services International  APM.AX  accepting CVC Asia Pacific's
$1.2 bln takeover offer
    ** 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
    ** Brokerage 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
    ** Adds a deal with CVC 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;))