Citi sees tailwinds for Australia's Johns Lyng Group

Johns Lyng

21/02/2023 23:36

** Citi says interim results from Australia's Johns Lyng
Group  JLG.AX  were buoyed by the 'Catastrophe' segments, with
contributions likely to remain elevated in the near term
    ** Adds job volume wins with respect to Hurricane Ian and
potential uplift in contribution following Cyclone Gabrielle
should improve resilience of Catastrophe revenue profile
    ** Co reported a more than double profit after tax to A$25.2
mln, declared an interim dividend of 4.5 AU cents per share
 urn:newsml:reuters.com:*:nL4N3502Y4
    ** However, broker says JLG is taking a conservative stance
with its new guidance for FY23 revenue and earnings before
interest, tax, depreciation and amortisation
    ** Broker raises its FY23 EBITDA by 3% to A$117 mln due to
expectation of buoyant contribution from 'Catastrophe' events as
well as double-digit revenue growth from 'Business As Usual'
segment 
    ** Citi also raises FY23 revenue forecast by 11% to A$1,223
mln
    ** Brokerage reiterates "Buy" rating, raises price target to
A$9.65 per share 
    ** 10 of 11 analysts rate the stock "buy" or higher, none
"hold" and one "sell" or lower; their median PT is A$8.09 –
Refinitiv data
    ** As of last close, stock had risen ~2.4% this year
 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))