EQT HOLDINGS LIMITED (EQT)
Share Price Analysis and Chart

23/08/2024

1

Buy

$37.50

27.33%

FY24 results for EQT Holdings slightly missed Ord Minnett's forecasts even though market conditions were buoyant, and revenue synergies were achieved. Underlying earnings came in -3.4% adrift of the broker's $67m forecast.

The analyst anticipates the integration of Australian Executor Trustees (AET) should continue to flow to profits via cost and revenue
synergies.

The target rises to $37.50 from $37.00, despite the broker's lower earnings forecasts, on a valuation roll-forward. Buy.

FORECAST
Ord Minnett forecasts a full year FY25 dividend of 123.00 cents and EPS of 176.10 cents.
Ord Minnett forecasts a full year FY26 dividend of 136.00 cents and EPS of 194.10 cents.

01/09/2024

1

Overweight

$33.50

13.75%

EQT Holdings reported underlying profit up 14% year on year, in line with consensus, and earnings up 9%, driven by strong organic
growth in Corporate and Superannuation Trustee Services and achieving synergies from the Australian Executor Trustees acquisition.

This was achieved despite cost of doing business growth, Wilsons notes, and being adversely impacted by a large mandate loss in CSTS.

Looking ahead, EQT is well-placed to drive strong underlying profit growth with record low employee vacancy rates, revenue synergies, continued client mandate wins and a strong balance sheet and operating cash flow providing for M&A, Wilsons suggests.

The broker remains Overweight and believes the recent sell-off provides a compelling buying opportunity. Target falls to $33.50 from $33.90.

FORECAST
Wilsons forecasts a full year FY25 dividend of 135.00 cents and EPS of 169.00 cents.
Wilsons forecasts a full year FY26 dividend of 158.00 cents and EPS of 198.00 cents.