Given an anticipated recovery in travel as Australia’s international borders open Macquarie notes the return of NIB Holdings’ travel division offers 10% upside to group earnings through to FY24.
The broker expects travel policies to reach 91% of pre-covid levels by the first half of FY25 despite the company guiding to full recovery by FY24. NIB Holdings’ policies offer additional covid coverage compared to peers, likely to be attractive to some travelers.
The Neutral rating and target price of $7.10 are retained.
Sector: Insurance.
Target price is $7.10.Current Price is $6.25. Difference: $0.85 – (brackets indicate current price is over target). If NHF meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
