EUREKA GROUP HOLDINGS LIMITED (EGH)
Share Price Analysis and Chart

27/02/2025

1

Add

$0.79

51.92%

Eureka Group lowered FY25 EBITDA and EPS guidance by -5% but Morgans notes this was partially offset by the reiteration of the guidance for fully deployed underlying EPS growth of at least 19%. The 1H25 result was in line with expectations

The broker understands the majority of the downgrade was due to uncertainty in the timing of transactions but the lower occupancy and delayed rental increases were notable.

The broker cut the FY25 EBITDA forecast by -3% to account for the downgraded guidance. FY26 forecast was unchanged. Target price declines marginally to 79c from 80c, and Add retained.

FORECAST
Morgans forecasts a full year FY25 dividend of 1.50 cents and EPS of 3.00 cents.
Morgans forecasts a full year FY26 dividend of 1.70 cents and EPS of 3.60 cents.

03/03/2025

1

Buy

$0.69

32.69%

Eureka Group delivered first half underlying earnings that were up 9%, amid a strong year for residential rents. FY25 guidance is downgraded by -5% as management now expects growth of around 2.6% compared with 8% previously.

Moelis notes this relates to the capital footprint. Management had previously flagged $57m in targeted acquisitions but transactions appear to be delayed and now will make a negligible contribution to FY25.

The broker downgrades estimates to reflect revised guidance and assumes a more lagged net capital deployment profile. Target slips to $0.69 from $0.70 and a Buy rating is retained.

FORECAST
Moelis forecasts a full year FY25 dividend of 1.50 cents and EPS of 3.10 cents.
Moelis forecasts a full year FY26 dividend of 1.70 cents and EPS of 3.60 cents.