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

01/09/2025

1

Buy

$0.85

63.46%

Eureka Group largely delivered on its revised FY25 guidance, Morgans notes, reaffirming its commitment to more than 19% earnings growth over FY24 once the capital to be raised in November is fully deployed – a milestone which should be achieved in 2025.

Eureka's investment thesis hasn’t changed, Morgans points out, with the business growing earnings through positive like-for-like rental growth, investment across its existing portfolio, and the incremental acquisition and expansion of new villages.

Commentary suggests macro trends support the business model for affordable seniors’ rental accommodation. Target rises to 85c from 79c, Buy retained.

FORECAST
Morgans forecasts a full year FY26 dividend of 1.60 cents and EPS of 3.40 cents.
Morgans forecasts a full year FY27 dividend of 1.80 cents and EPS of 3.70 cents.

27/08/2025

1

Buy

$0.69

32.69%

Eureka Group's FY25 underlying EPS of 3.13c was in line with Moelis' forecast but FY26 EPS guidance was -5% below previous estimate.

Earnings growth is dependent on capital deployment into acquisitions & developments following the Nov 2024 equity raise, but -$100m of potential acquisitions are currently under negotiation. The broker therefore left earnings outlook unchanged.

Operating performance was solid and development pipeline points to -$100m in capex at yields above portfolio average cap rate of 8.3%.

Gearing rose to 18.5% from 13.5% in December, and the broker expects it to reach 30% by June 2027.

Buy. Target unchanged at 69c.

FORECAST
Moelis forecasts a full year FY26 dividend of 1.60 cents and EPS of 3.40 cents.
Moelis forecasts a full year FY27 dividend of 1.90 cents and EPS of 4.00 cents.