EQT General Discussion

Many companies featured on 'HC' have such a thread that's useful between half yearly (or quarterly) trading announcements.

A 'lively' blog features these comments from two analysts. I merely pass it on: make of it what you will, and DYOR:

(interesting comment about the UK business as I'd been wondering how the much discussed recession over there affected EQT's subsidiary. When I travelled to UK/Europe late in 2022, the economies seemed 'two-speed': retired people with their own residences seemed relatively comfortable, with these are a major subset of EQT's target markets.

Younger people (who may be renting, and lack significant savings) were much more worried, though I only talked to a very small sample of the latter:

EQT Holdings (ASX: EQT)

Katie Hudson (BUY): It's a buy for us. We like Equity Trustees. We think they've got a really great platform, and a really strong, resilient earning stream. The corporate trust business is growing. They've done a great acquisition with IOOF's AET business. We think the synergies from a capital release and a cost perspective will be higher than people are expecting. We think they have an opportunity to sell their UK business, which while unprofitable, we think will release value. Then over time, that platform should be capable of growing leverage to markets and they should get really good operating leverage. Great balance sheet, good management, and one we like.

Chris Conway: Mike, what about you? EQT holdings? Is it a buy, hold, or sell?

Mike Younger (BUY): It's a buy for all the reasons Katie has said. I think she stole my script. The one thing I would add is that over the last few years, notwithstanding this fantastic growth outlook, is that the company's EPS growth is likely to rise about 50% in the next two years. You've seen PE derating in the last few years such that it's trading at a market multiple for a business that is well above market quality.