UBS positive on Kelsian's $325 million acquisition of All Aboard America!

Kelsian

16/03/2023 04:45

** Analysts at UBS say Australia's Kelsian Group Ltd's
 KLS.AX  acquisition of U.S.-based bus operator All Aboard
America! Holdings Inc in a $325 million deal is a high
single-digit adjusted earnings per share accretion on a CY22
basis 
    ** Says on a forward-looking basis, All Aboard America's
EBITDA growth in excess of about 10% from CY22 levels would see
the accretion on deal increase  
    ** Says All Aboard America has strong customer exposure to
growth sectors such as technology and Oil & Gas
    **"While the acquisition is a material transaction in a new
offshore market for KLS, we note the vendors have been long-term
owners (since 2016) and KLS insiders are materially
participating in the raise"- UBS 
    ** KLS shares have been placed on a trading halt over an
announcement regarding an institutional placement 
    ** Five out of ten analysts rate the stock "buy" or higher
and five "hold"; their median PT is A$7.50 - Refinitiv Eikon
data 
    ** Stock up 10.4% this year, as of last close, vs a 0.43%
increase in the benchmark S&P/ASX 200 index  .AXJO  


 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))