PeopleIn: Strategic review see PPE stay the course

About the author:

Author name:

By Liam Schofield

Job title:

Analyst

Date posted:

01 June 2023, 7:00 AM

Sectors Covered:

Industrials

• In Nov-22 PeopleIn (ASX:PPE) launched a strategic review, as the Board felt the share price at the time (c.$3/share) did not fully reflect shareholder value. The review has now been concluded, with the outcome that PPE should remain in its current form and continue executing its current three-year strategy.
• Whilst valuation and earnings forecasts are incrementally weaker post the announcement, PPE still screens well, in that the company trades at c.10x (FY24F PER), with earnings growing at low to mid double digits, strong free cash flow conversion and a c.5% dividend yield, all positive characteristics that are somewhat rare amongst the small cap universe.
• Retain ADD rating, whilst reducing our price target to (login to view).

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