Morningstar sees improved 2022 for InvoCare on 'mortality normalisation'

InvoCare

07/07/2022 20:48

** Analysts at Morningstar expect Australia-based funeral
services provider InvoCare's  IVC.AX  depressed pricing and
depreciating volumes from COVID-19 to be transitory, whilst
forecasting an earnings recovery in 2022  
    ** Say mortality volumes appear to be normalizing with
pricing to follow suit in the fiscal year 2022, the first full
year with virtually no funeral restrictions
    ** Morningstar says at current prices, shares in IVC seem
'attractive' as compared to the brokerages' unchanged fair value
estimate of A$15.3 per share 
    ** Sees IVC's demand for higher-margin services to bounce
back following the removal of restrictions 
    ** Brokerage forecasts pricing for IVC's services to return
to pre-pandemic levels in 2022 
    ** "Unfortunately, there is no cure for death, and we expect
the historically low mortality rate to be a short-term
phenomenon"- Morningstar
    ** Stock down 8.2% this year, as of last close

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))