Morningstar initiates PSC Insurance Group with 'narrow moat' rating

PSC Insurance

09/06/2023 05:16

** Analysts at Morningstar start coverage on Australian
insurance co PSC Insurance Group  PSI.AX  with a fair value
estimate of A$4.90 per share
    ** Assigns a 'narrow moat' rating and 'medium' uncertainty 
    ** Brokerage estimates PSI accounts for around 3% of the 
intermediated general insurance market in Australia in terms of
gross written premium
    ** Says PSI's track record of acquiring and growing
businesses is good, evidenced by EPS growth of 9.5% per year
over the three years to FY22
    ** Says PSI generates better margins then peers, and expects
broking business margins to be static over the next five years
    ** Three of five analysts rate the stock "buy" and two
"hold"; their median PT is A$5.75 – Refinitiv data
    ** PSI stock flat at A$4.740 as at 0415 GMT; down 5.4% YTD
as of last close

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))