PACIFIC SMILES GROUP LIMITED (PSQ)
Share Price Analysis and Chart

30/08/2024

1

Overweight

$2.15

10.26%

Morgan Stanley believes investors will refocus on fundamentals for Pacific Smiles, which reported a better-than-expected FY24 result.

July was notable for the growth in 8.4% patient fees despite what is generally a seasonally weak period with pick-up generated from longer hours worked including weekends.

The broker believes the timing of the rollout, which was required to stop recently will impact on earnings. Management have conversely pointed to better appointment reminders and reduced cancellation rates.

The analyst raises earnings forecasts by around 14% for FY25 to FY26 with an accompanying lift in the target price to $2.15 from $1.90.

Overweight unchanged. Industry View: In-Line.

FORECAST
Morgan Stanley forecasts a full year FY25 EPS of 7.30 cents.
Morgan Stanley forecasts a full year FY26 EPS of 9.00 cents.

04/09/2024

3

Market Weight

$1.80

-7.69%

Wilsons observes Pacific Smiles reported an 8.3% increase in gross patient fees in FY24 with trading softening towards the end of the fiscal year.

The broker notes an improvement in margins and the company ended the year with cash on hand of $17.7m with a 3.2c dividend.

Patient fees rose 10.4% in the weeks up to Aug 27 or 8.4% for an adjusted work-day.

Market weighting with a $1.80 target price, revised from $1.40.

FORECAST
Wilsons forecasts a full year FY25 dividend of 6.00 cents and EPS of 6.00 cents.
Wilsons forecasts a full year FY26 dividend of 7.70 cents and EPS of 7.70 cents.