Top broker rates IPH shares as a 'buy'

Goldman's is tipping the group will grow earnings per share at a 12 per cent compound rate between fiscal 2019 through fiscal 2022.  

a woman

IPH Limited (ASX: IPH) shares could offer around 17 per cent upside over the next 12 months if the analysts at Goldman Sachs are on the money. 

According to a November 21 research note out of the investment bank, IPH has made a good start to fiscal 2020 thanks to strong performance across its Asian operations and expanding margins in ANZ.

The analysts also believe the group can draw cost savings from recent acquisitions and is capable of pursuing its aggressive acquisitive growth strategy.

IPH itself is a holding company for a group of fully-owned patent law firms operating across ANZ and Asia. 

Goldman's is tipping the group will grow earnings per share at a 12 per cent compound rate between fiscal 2019 through fiscal 2022.  At $8.10 shares change hands for 21x Goldman's estimates for 38 cents per share in earnings over fiscal 2020. 

Other legal groups on the local market include Slater & Gordon Limited (ASX: SGH), or IMF Bentham Ltd (ASX: IMF). 

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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