MS says Australia's McMillan Shakespeare's year likely to get better

McMillan Shakespeare

01/02/2021 01:56

** Morgan Stanley expects financial services provider
McMillan Shakespeare  MMS.AX  to post strong H2 2021 after
beating its H1 2021 underlying net profit estimates
    ** McMillan posted underlying net profit of A$42.7 mln
($32.61 mln), ahead of MS estimates of A$31.1 mln
    ** Recent industry data points indicate vehicle demand
likely to continue improving throughout H2 2021, says MS, which
would be welcome news for co's novated vehicle leasing segment
    ** MS raises PT to A$14.3 from A$12.0, maintains overweight
rating
    ** "We find valuation undemanding in both absolute and
relative terms, particularly when the cycle is just starting to
show signs of rebounding" - MS
    ** Stock rises as much as 4.8% to A$13.285
    ** In Jan, stock rose 2.3% after losing 5.4% in 2020


($1 = 1.3094 Australian dollars)

 (Reporting by Arpit Nayak in Bengaluru)
 ((Arpit.Nayak@thomsonreuters.com; +91  80 6182 3472;))