A very strong result from IPH beat forecasts across the board, helped by cost discipline and forex tailwinds, Morgans notes. The stock is a quality defensive with a big step-up in earnings offered by the Xenith acquisition, with margin increases expected ahead as has been the case with AJ Park.
Incorporating Xenith takes the target to $9.48 from $8.51 but as the stock has rallied hard up the result Morgans pulls back to Hold from Add.
Sector: Commercial & Professional Services.
Target price is $9.48.Current Price is $9.15. Difference: $0.33 – (brackets indicate current price is over target). If IPH meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
