Morningstar raises Kelsian's fair value estimate

Kelsian

30/08/2023 20:52

** Analysts at Morningstar raise fair value estimate on
Kelsian Group Ltd by 3% to A$6.70 per share
    ** Brokerage action to the fair value estimate mainly
reflects upgrades to longer-term expectations for bus earnings,
both in the United States and Australia     
    ** "Although Kelsian's contracts are indexed to wage
inflation, knock-on effects of driver shortages, such as churn
and absenteeism, meant that it likely missed out on around A$4
mln ($2.59 million) of performance payments" - Morningstar
    ** We expect these headwinds will extend into fiscal 2024
and forecast an EBITDA margin of 12.0%, brokerage says 
    ** KLS has risen 14.6% YTD, as of last close 


($1 = 1.6745 New Zealand dollars)
($1 = 1.5434 Australian dollars)

 (Reporting by Aishwarya Nair in Bengaluru)
 ((Aishwarya.Nair@thomsonreuters.com; +91-9167838937 Twitter: https://twitter.com/Aishwaryartrs
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