** Morningstar analysts say that the price offered for Australia’s APM Human Services APM by CVC Asia Pacific undervalues the company as a standalone business and is opportunistic
** The employment services firm rejected an A$1.47 billion (A$1.60 per share) takeover offer from private equity firm CVC Asia Pacific since the latter did not “sufficiently reflect its fundamental value”
** Morningstar remains confident of near-term outlook for co, although many headwinds exist such as tight labour market and lack of ability to attract and retain health professionals
** The broker sees relatively strong H2 FY2024 earnings performance for APM based on recently implemented operational efficiencies and organic growth of health business
** Morningstar leaves fair value estimate of A$2.40 per share unchanged, sets “high” uncertainty rating
** Four of six analysts rate the stock “buy” or higher, two “hold” and none “sell” or lower; their median PT is A$1.43 – LSEG data
** The stock has remained flat this year, as of last close
