Coles Group (ASX:COL)

COL's 1H23 EBIT was above our forecast but was driven by lower-than-expected D&A. At the EBTDA level, the result was broadly in line with our expectation.

We make minimal changes to FY23-25F group underlying EBIT with upgrades to Supermarkets offset by downgrades to Liquor and the removal of Express.

We maintain our Add rating.

Seek Limited (ASX:SEK)

It was broadly a positive result, in our view, however job ad volume growth moderating in 2H23 (particularly ANZ), whilst not unexpected, looks to be a factor in guidance being set at the lower end of previously flagged ranges.

We adjust our FY23F-FY25F EPS by -5%-+1% factoring in the revised guidance, lower topline estimates across our forecast period on additional conservatism and improved EBITDA margins in SEEK Asia. Add maintained.


HUB reported above expectations.

HUB looks to be delivering 'cleaner' financials; the product offering is industry leading (along with NWL); and the runway to secure more clients looks intact. Whilst upside to our valuation is reasonably low, the potential for larger 'transitions' wins is a realistic catalyst within CY23. Add maintained.

Monash IVF Group Ltd (ASX:MVH)

MVF posted a solid 1H23 result of underlying NPAT of A$12.6m which was slightly ahead of guidance. Despite industry volumes declining in the half, MVF continues to gain market share in its key markets through both organic growth and through acquisitions.

We have made minor changes to our forecasts, adjusting our cost base down slightly. We maintain our Add recommendation.

Peter Warren (ASX:PWR)

PWR's 1H23 result was broadly in-line, however showed the impact of higher opex flowing through.

PWR is trading on ~11x our assumed more 'normalised' conditions (FY24/25). Industry consolidation will continue - we expect PWR to be a participant which adds to structural earnings capacity. Adding Toyota is a potential s-term catalyst.

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.

Contact us

Disclaimer: 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.

News & Insights

One year is a long time in politics. After delivering a budget that straddled the right balance between balance sheet repair and fiscal expansion, the 2024/25 budget was delivered with an eye to next year’s election. Tonight’s announcements centred around cost-of-living relief for all and the well-publicised plan for a “Future Made in Australia” promising over $22bn in spending over the next ten years but also bringing higher deficits over the forecast period.
Read full article
Jim Chalmers talks as if he is delivering a big surplus. Certainly, $9.3 billion sounds like a lot of money. However, last year Australian GDP was an amazingly large $2.6 trillion. The Budget Papers (Table 1.2) show this budget surplus as just a small budget balance of 0.3% of GDP. Of course, a budget balance of 0.3% is better than no balanced budget at all.
Read full article
Investment Watch is a flagship product that brings together our analysts' view of economic and investment strategy themes, sector outlooks and best stock ideas for our clients.
Read full article

News & Insights

Today, Wednesday the 22nd of February, we are happy to buy Coles Group (ASX:COL), SEEK Limited (ASX:SEK), HUB24 Ltd (ASX:HUB) Monash IVF Group (ASX:MVF), and Peter Warren (ASX:PWR).
Find out more