For subscribers unfamiliar with AUB, it operates insurance brokers and underwriting agencies in over 520 locations in Australia and New Zealand; impressively, the stock is up +31% year-to-date. In August, they delivered their fourth upgrade to guidance for FY23 with the implied upgrade for 2H profitability of ~9%, but the lacklustre reaction by the stock tells us the market has started to price AUB for perfection.
- We can see AUB grinding higher if stocks remain firm, but we see no reason to chase the stock ~$30.
MM is neutral toward AUB
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