Smartgroup Corporation Ltd

SIQ: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$3.10	Lnrdd	Rfxkxpfgg

Smartgroup: Contract Win a Positive but Shares Are Already Hot

Shaun Ler

Dec 11, 2023

We lift our fair value estimate for no-moat Smartgroup to AUD 8.30 per share from AUD 7.90, largely due to increased salary packaging and novated leasing volumes. This reflects a contract win from the South Australia, or SA, government—previously serviced by Smartgroup’s competitor McMillan Shakespeare, and strong growth in novated leasing volumes that prompted an upward revision in its earnings guidance for 2023.

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