McMillan Shakespeare gains after Macquarie remains positive despite contract loss

McMillan Shakespeare

12/12/2023 03:47

** Shares of Australia's McMillan Shakespeare  MMS.AX  rise
as much as 3.7% to A$17, set for their biggest intraday jump
since Oct. 25, if gains hold
    ** Analysts at Macquarie says despite losing a recent South
Australian govt contract, market conditions around motor vehicle
leases still remain favourable for the novated leasing firm
    ** A novated lease is a motor vehicle lease whose
obligations have been transferred from one party to another
    ** The contract represented around 38,000 salary packaging
arrangements, which contributed around A$16.3 mln ($10.74 mln)
to co's Group Remuneration Services' unit's FY23 revenue
    ** Broker says market factors remain attractive with
increased motor vehicle supply and policy-driven demand for MMS'
services 
    ** Maintains "outperform" rating on stock
    ** Brokerage, however, cuts PT to A$19.02 from A$23.94 on
lower earnings expectations over FY25 and FY26
    ** Stock has risen 22.2% this year, as of last close 


($1 = 1.5181 Australian dollars)

 (Reporting by Megha Rani in Bengaluru)