Assuming the takeover of Aventus Group ((AVN)) involving Homeco Daily Needs ((HDN)) goes ahead, Credit Suisse calculates assets under management will increase to $5bn.
Home Consortium is paying 7% of total consideration. FY22 earnings guidance has been upgraded to $0.26 per security and distribution guidance is unchanged at $0.12.
Credit Suisse revises FY22, FY23 and FY24 estimates up by 42.5%, 6.6% and 3.7%, while acknowledging there is downside risk to estimates in the transaction does not proceed. The broker raises the target to $7.53 from $5.87 and retains a Neutral rating.
Sector: Real Estate.
Target price is $7.53.Current Price is $7.90. Difference: ($0.37) – (brackets indicate current price is over target). If HMC meets the Credit Suisse target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
