EQT HOLDINGS LIMITED (EQT)
Share Price Analysis and Chart

18/10/2024

1

Buy

$37.00

17.09%

EQT Holdings' 1Q trading update revealed good progress across most areas of the business, according to Ord Minnett, though revenue growth upside is considered modest.

The update was a slight beat against the broker's forecast at the funds under administration and supervision (FUMAS) level, but there were misses for revenue and operating margin.

Buy. The target falls to $37.00 from $37.50.

FORECAST
Ord Minnett forecasts a full year FY25 dividend of 118.00 cents and EPS of 168.50 cents.
Ord Minnett forecasts a full year FY26 dividend of 132.50 cents and EPS of 189.40 cents.

02/09/2024

1

Overweight

$33.50

6.01%

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.