Wesfarmers Limited (ASX:WES)
WES's FY22 result was comfortably above expectations.
Management said retail trading conditions have remained robust through the first seven weeks of FY23. FY23-25F group underlying EBIT changes by between -1% and +3%. We maintain our Add rating. We continue to view WES as a core portfolio holding for long-term investors.
Ramsay Health Care (ASX:RHC)
FY22 results continue to be materially impacted by COVID and higher costs, with margins contracting to multi-year lows and profit falling by double-digits.
Despite lingering volatility and FY24 a "normal" trading year, it takes a back seat to KKR's now revised offer, which we believe is likely to get up in some form. We have adjusted our FY23-24 earnings, rolled forward our valuation multiples, and maintained a takeout premium. Move to Add.
Universal Store (ASX:UNI)
We believe UNI will deliver double-digit growth in sales and earnings in FY23 as an expanded store network plays into the resilience of demand for fashion apparel from a young customer cohort experiencing high levels of employment, higher wages and more and more opportunities to go out and socialise.
FY22 earnings were slightly better than expectations. We have increased our EPS estimates by 5% in FY23 and by 1% in FY26.
Peter Warren (ASX:PWR)
PWR's FY22 underlying NPAT of A$61.7m was up 18% on the pcp, beating expectations.
We are conscious of the operating deleverage impact when GM 'normalises', however more constrained supply is likely to persist for some time.
Industry consolidation will continue - we expect PWR to be a participant (primary growth driver), or even a potential target in time.
Jumbo Interactive (ASX:JIN)
FY22 was a year of solid growth in revenue and earnings for JIN. The business continued to diversify its earnings base, with SaaS now making up nearly half of group EBITDA.
We reiterate our Add rating. We expect JIN to continue to achieve steady growth in the years ahead through a combination of organic contract wins, M&A and diversification.
Monash IVF Group Ltd (ASX:MVF)
MVF posted a solid FY22 result which was in line with expectations and sustained the high level of stimulated cycles on the bumper FY21 year. Strong industry fundamentals remain in play, and MVF continues to gain market share and attract new fertility specialists.
We maintain our Add recommendation.
Morgans clients receive access to detailed market analysis and insights, provided by our award-winning research team. Begin your journey with Morgans today to view the exclusive coverage.
