IOOF ‘s net flows held up reasonably well in the Sep Q under the circumstances, Macquarie notes, with platform inflows offset by outflows from advice and investment management.
The only thing now standing between IOOF and the OnePath acquisition is APRA, and 65% synergy realisation is on offer.
The broker retains Outperform despite the stock’s recent run, believing valuation to still be attractive ahead of those synergies. Target rises to $8.10 from $7.60.
Sector: Diversified Financials.
Target price is $8.10.Current Price is $7.54. Difference: $0.56 – (brackets indicate current price is over target). If IFL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
