Best calls to action – Tuesday, 21 February
About the author:
- Author name:
- By Andrew Tang
- Job title:
- Analyst - Equity Strategy
- Date posted:
- 21 February 2023, 6:00 AM
- Sectors Covered:
- Equity Strategy and Quant
Homeco Daily Needs (ASX:HDN) - Remains defensive with development upside
HDN offers investors exposure to a portfolio of daily needs assets with its large development pipeline to provide both near-term and future growth opportunities.
FY23 guidance was reiterated; metrics stable across the $4.7bn portfolio; and cap rate expansion was offset by property income growth. Looking ahead, the focus also remains on recycling assets and the development pipeline which has been boosted to +$600m from +$500m.
We retain an Add rating with a revised price target of (login to view).
Read our full reports and latest price targets on ASX:HDN here.
Helloworld Travl Ltd (ASX:HLO) - Recovering faster than expected
HLO's 1H23 result beat our forecast. The strength of its EBITDA margin was the key highlight and is already above pre-COVID levels. TTV and profitability continues to improve quarter on quarter highlighting that travel demand continues to recover in ANZ despite the current macroeconomic uncertainty.
HLO upgraded its FY23 EBITDA guidance by 25% at the midpoint. We have revised our forecasts and note management's track record of beating guidance.
Backing out its investment in CTD from its EV, HLO is materially undervalued, trading on a recovery year EV/EBITDA multiple of only 3.1x. Add maintained.
Read our full reports and latest price targets on ASX:HLO here.
Peoplein Limited (ASX:PPE) - Reaffirming FY23 guidance and delivering growth
PPE reported HY23 normalised EBITDA of $32.5m, 5.2% above our forecast of $30.9m, up 50% on the pcp. Normalised NPATA of $20.8m, was 6.8% above our forecast, up % on the pcp.
Whilst sales exceeded our expectations, this was primarily driven by the contributions from recently acquired lower margin businesses.
We have increased our FY23 and FY24 normalised EBITDA forecasts by 5.4% and 6.3% respectively, principally on the back of the strong HY23 result and the likelihood PPE can deliver at the top end of their FY23 guidance range (Normalised EBITDA: $62-66m).
We retain an Add rating and increase our target price to (login to view). On our estimates, PPE trades on an attractive 8.8x FY23 P/E with a fully franked dividend yield of c.4.7%.
Read our full reports and latest price targets on ASX:PPE here.
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Disclaimer: Analyst may own shares. The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.