Further detail on the Workforce Australia (NESM) contract wins has cemented APM Human Services International as the key market leader with 11% of total contracts. Credit Suisse notes the second largest contract winner was awarded 4% of market share.
The broker notes while APM Human Services International lost some key contracts in the Sydney and Perth employment regions, these are likely offset by wins in metropolitan Melbourne, and largely finds the Workforce Australia revenue stream to have been de-risked.
The Outperform rating and target price of $4.20 are retained.
Sector: Commercial Services & Supplies.
Target price is $4.20.Current Price is $3.23. Difference: $0.97 – (brackets indicate current price is over target). If APM meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).
