Helloworld's Valuation Unchanged by Exchange Acquisition
Dow Jones
Sep 23
0430 GMT - Helloworld's acquisition of a local currency-exchange business does nothing to shift Shaw & Partners' headline view of the Australian travel agent. With an unchanged buy rating on the stock, analyst Philip Pepe raises his EPS forecasts for the three years through fiscal 2029 by between 12% and 14%, but the valuation impact is offset by acquisition debt and share dilution. Pepe tells clients in a note that the Crown Currency Exchange business is seen by Helloworld as highly complementary to its existing retail operations, and observes that CCE's earnings over the past fiscal year were hit by uncertainty generated by the U.S.-Iran conflict. Shaw & Partners has a target price of 2.40 Australian dollars on the stock. Shares are up 2.5% at A$1.395.
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