Ann: MVF acquires Fertility North, expanding further in WA, page-3

Just got this in an email today ...

Wed, 20 Dec at 9:32 am

MVF - MONASH IVF GROUP LIMITED

Macquarie rates MVF as Outperform (1) - Monash IVF is to acquire 80% of Fertility North for an initial cash consideration of $12m, funded through operating cash flow and/

or debt facilities available. Monash IVF may acquire the remaining 20%, no earlier than three years from completion.

Detailed transaction metrics have not been disclosed, although Macquarie expects potential earn-out payments over 1-3 years based on performance. The acquisition is subject to certain conditions, including ACCC approval.

Management anticipates Fertility North to have some 15% market share in WA. Should the transaction complete, Macquarie estimates Monash IVF's total market share in WA to be around 25%.

Outperform. No change to forecasts or $1.50 target until the deal is completed.

Target price is $1.50 Current Price is $1.35 Difference: $0.15 If MVF meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges). Current consensus price target is $1.44, suggesting upside of 6.5%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY24:

Macquarie forecasts a full year FY24 dividend of 5.00 cents and EPS of 7.60 cents . At the last closing share price the estimated dividend yield is 3.70%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.76. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.4, implying annual growth of 32.1%. Current consensus DPS estimate is 5.1, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 18.2.

Forecast for FY25:

Macquarie forecasts a full year FY25 dividend of 5.40 cents and EPS of 8.40 cents . At the last closing share price the estimated dividend yield is 4.00%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.07. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.2, implying annual growth of 10.8%. Current consensus DPS estimate is 5.4, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 16.5.

Market Sentiment: 0.9All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources