Morningstar trims estimate on Australia's McMillan Shakespeare

McMillan Shakespeare

27/10/2024 21:51

** Morningstar cuts fair value estimate on Australia's
McMillan Shakespeare  MMS.AX  to A$17 from A$18
    ** Brokerage reduces estimate owing to lower medium-term
growth expectations for novated leases and higher projected
expenses in the plan support services division
    ** We expect continued growth in novated leases as
cost-of-living pressures encourage employees to seek vehicle
financing through these arrangements - Morningstar
    ** Brokerage however expects future novated leasing yields
to decline from FY24 levels due to increased vehicle supplies,
including EVs
    ** Adds, despite revised fair value, shares remain modestly
undervalued at current levels
    ** Stock has fallen 5% this year, as of last close

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