First quarter trading for Smartgroup Corp is tracking mostly in line with consensus expectations for 2024, with revenue a slight beat and costs a miss.

Revenue growth was mostly driven by volumes, with average monthly new lease orders up by 7%, compared to the 2H of FY23.

Average monthly revenue has risen by 5% when compared to the 1H of FY23, and implies to the broker $142m for the 1H of FY24, which aligns with the consensus estimate.

Electric vehicle take-up was solid (up by 42%) in the broker's view, but stabilising. Inthe 2H of FY23 the a rise of 41% ocurred.

Equal-weight rating. Target $9.50. Industry view: In-line.

Sector: Commercial & Professional Services.

Target price is $9.50.Current Price is $8.74. Difference: $0.76 - (brackets indicate current price is over target). If SIQ meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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