S&P/ASX 200 Index (ASX: XJO) share Smartgroup Corporation Ltd (ASX: SIQ) is enjoying a solid lift today.
The company, which provides outsourced administrative and vehicle fleet management services, is up 2.5% in afternoon trade at $4.74 per share.
That will come as welcome news to shareholders who've watched the Smartgroup share price tumble 43% over the past six months.
Also likely to raise the spirits of investors in the ASX 200 share was the latest upgrade by Morgans.
The broker has raised Smartgroup stock to an 'add' classification with a price target of $5.65 per share.
That represents a 19.2% upside to the current share price.
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What's been happening with this beaten-down ASX 200 share?
Investors may be reanalysing the outlook for Smartgroup shares following Wednesday's earnings update and contract renewal announcement.
On the contract end, the ASX 200 share reported that one of its major customers, the Health Administration Corporation of New South Wales (NSW Health), renewed its salary packaging and novated leasing services arrangements. Including extensions, the renewed agreement runs until 2028.
As for earnings expectations, Smartgroup estimated its full 2022 calendar year NPATA to be in the range of $60 million to $61 million. (The company notes that NPATA is net profit after tax, "adjusted to exclude the non-cash tax effected amortisation of intangibles and significant non-operating items".)
Commenting on Wednesday's update that could be spurring ASX 200 investor interest, Smartgroup CEO Tim Looi said:
We expect to deliver a full-year profit result that demonstrates the resilience of our business in the face of a difficult economic environment and continuing car supply constraints. We are very pleased to have renewed our contract with NSW Health and look forward to continuing this excellent long-standing relationship.
Smartgroup share price snapshot
The Smartgroup share price has dropped 37% over the past 12 months. For some context, the ASX 200 is down 2% over that same period.
