Morningstar initiates coverage on bus operator Kelsian with 'high uncertainity' rating

Kelsian

18/04/2023 20:52

** Analysts at Morningstar start coverage on Australian
company Kelsian Group Ltd  KLS.AX  with fair value estimate of
A$6.50 per share, implying a potential upside of 10.92% on
stock's last close of A$5.86
    ** Brokerage assigns "high Morningstar uncertainity rating" 
    ** Says a likely catalyst for the bus operator would be the
future performance of All Abroad America!, an $325 mln
acquisition KLS announced in March
    ** Sees "moderate value" in Kelsian shares at current prices
    ** Brokerage expects "intense" sector competition to persit
over the long term and does not believe KLS has any competitive
advantages over peers
    ** Forecasts minimal EBITDA margin expansion for co with
13.6% margin expected in FY22 and 14% by FY27
    ** Seven of 10 analysts rate the stock "buy" or higher and
three "hold "; their median PT is A$7.90- Refinitiv data
    ** Stock has risen 3.3% this year, as of last close 

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))