Ann: ADH Acquisition of Mocka Presentation, page-34

This from FNArena gives a pretty good insight into the thinking of analysts.

While the price of the acquisition is not cheap, Morgans notes it is rare to acquire an online business that is profitable and light on capital requirements. The broker includes the acquisition in modelling, which results in 9% accretion in FY20 and 15% in FY21, and retains an Add rating and $2.42 target for Adairs.Wilsons calculates a 100 basis points improvement in the Mocka gross margins would result in 4.8% upgrades to earnings in FY20 and has an Overweight rating and $2.76 target. UBS, too, considers Adairs is a well run, cash generating business with a solid growth profile, maintaining a Buy rating with a $2.60 target.While fashionable home furnishings are unlikely to be a fad, competitive pressure is increasing, the broker adds, although the company appears to have tapped into a market that sits below the international entrants, being mid-priced.UBS expects Adairs to reach 190 stores by FY28, up from 165 in FY19, and suspects 'upsizing' will be the name of the game in future, as opposed to increasing the store count, and this will be done via the roll-out of homemaker stores and increasing the space of the small format stores.The Adairs debt facilities have been increased to $90m to fund the majority of the deal. Adairs has also reiterated its underlying guidance for FY20 (ex Mocka) at $43-46m, emphasising it is well-placed in terms of planning and inventory ahead of the important Christmas trading.