Analysts upbeat on Australia's Johns Lyng as New Zealand footprint solidifies

Johns Lyng

12/12/2023 18:52

** Analysts are upbeat on Australian building services firm
Johns Lyng Group  JLG.AX  after it signed an agreement with New
Zealand-based insurer Tower Ltd  TWR.NZ 
    ** JLG on Tuesday announced building repair services
contract with TWR as part of the insurer's New Zealand panel
    ** Contract comes at a time when JLG looks to increase its
footprint in NZ after Cyclone Gabrielle
    ** "TWR agreement has laid more concrete foundation for
JLG's ambition to grow its NZ operations" - Citi
    ** Jefferies says TWR's ~10% insurance market share and
~NZ$241 mln ($147.64 mln) of incurred gross claims from FY23
catastrophic events provide JLG "solid platform to grow business
in NZ"
    ** Citi retains "buy" rating on JLG with PT of A$7.00;
Jefferies retains "hold" rating and PT of A$6.50
    ** Eight of 11 analysts rate JLG "buy" or higher and three
"hold"; their median PT is A$7.32 – LSEG data
    ** JLG down 4.7% this year, as of last close


($1 = 1.6324 New Zealand dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))