Why is IVE Group (IGL) getting smashed?

Hi Carl,

• You rightly point out a number of things weighing on  IGL. The stock pays a healthy dividend and we suspect many held off on selling until the shares had traded ex-dividend earlier this week after a disappointing FY23 result in August.
• The Vic Child Working permits is a controversy the company didn’t need at this stage, though the impact looks to be largely immaterial from our point of view, likely some small one-off costs to rectify and business should continue as usual.
• FY24 guidance was below expectations with the company looking for mid-single digit profit growth. Consensus expectations are now below the bottom of the guidance range suggesting a lack of confidence in the update, further weighing on valuations.
• IGL is cheap on ~7x forward PE and an expected yield of over 9%, but short term sentiment is against it. We have it on our Income Portfolio Hitlist, and it is also on the radar for the Emerging Companies Portfolio, however, but we see no reason to be brave buyers just yet given the momentum.

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IVE Group Ltd (IGL)

LAST UPDATED 15/09/2023 12:20

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IVE Group Ltd (IGL)

LAST UPDATED 15/09/2023 12:20