Consensus community valuation
Market will not like this, profit downgrade for FY24. Revenue growth remains solid, but the "margin improvement" initiatives having been slower to deliver.
Held in RL and SM
Pretty stable, growth business. Has long term tailwinds for the need for increased testing for personalized medicine and potential for reduced costs due to AI. Further rollout global (organic and inorganic) plus some cost synergies to come through. Pretty recession proof earnings. Some earnings are regulated as the only detractor.
Going to use a dividend growth model as mature business, stable dividend growth in the past.
$1.04 in dividends (last interim and upcoming final).
Going to include the value of franking is $1.49 as i’m entitled to it.
Want at least a 10% return and think it can grow at 5%pa for the foreseeable future given the tailwinds.
1.49/(0.1-0.05) = $29.80
If I buy now I get the $0.62 dividend - plus franking gets $0.89 in a couple of weeks - gets me to $30.69 (29.80+0.89).
I'd like it cheaper (mid to high 20s) but for a defensive business think it's reasonably priced. Not going to make me rich overnight but good for the SMSF long term.
On market purchases recently by insiders also gives some comfort.