IPH Limited's earnings (EBITDA) result of $114.5m was slightly ahead of consensus, according to Morgans.
The broker noted reference by management to some domestic weakness due to office closures in Victoria and lower filings, but believes this is temporary in nature and expects revenues to bounce back in FY22.
The organic growth of the Australian business was hindered by covid-19 and lower client filings, but strong revenue growth was driven by the acquisition of the Xenith IP and currency tailwinds, notes the analyst.
Morgans reports that cash conversion was strong at over 100%, while the fully franked dividend of 15cps was slightly less than forecast.
The Add rating is maintained. The target price is decreased to $8.64 from $8.69.
Sector: Commercial & Professional Services.
Target price is $8.64.Current Price is $7.62. Difference: $1.02 - (brackets indicate current price is over target). If IPH meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).
© 2020 Acquisdata Pty Ltd., source FN Arena