Morningstar upbeat on takeover deal for Australia's Johns Lyng Group, says deal likely to go through

Johns Lyng

13/07/2025 20:21

** Analysts at Morningstar see Pacific Equity Partners' bid for building services provider Johns Lyng Group JLG.AX as a fair deal and think it is likely to go through

** "We thought JLG shares were materially undervalued, and clearly the bidder agrees, offering a massive premium, within 7% of our stand-alone fair value estimate" - Morningstar

** Shares ended 22.6% higher on Friday after the deal was announced

** Investment research firm lowers fair value estimate for JLG to the bidder's offer price to A$4 and ascribes 100% profitability of the deal going through

** Four out of eight analysts rate the stock 'hold', three rate it 'buy' or higher, one rates it 'sell'; median price target is A$3.3 - data compiled by LSEG

** YTD, JLG up 4.3% as of last close

 (Reporting by Jasmeen Ara Shaikh in Bengaluru; Editing by Sandra Maler)

 ((JasmeenAraIslam.Shaikh@thomsonreuters.com;))