A key acquisition from IVE Group Ltd (ASX: IGL) has helped improve the outlook for this ASX communications stock, according to Bell Potter.
The company is the largest integrated marketing communications business in Australia with leading market positions across every sector in which it operates.
Over the last 12 months, this ASX communications stock has risen by 33%.
In late December last year, the company acquired DailyPress.
Here's an overview of the deal.
Image source: Getty Images
Key acquisition
On December 31, 2025, the company announced the completed acquisition of Daily Press, an Australian-based creative agency specialising in digital, social media and performance marketing.
The company said the total purchase consideration for Daily Press is up to $35.0 million, comprising:
- $25.0 million payable in cash on completion
- up to $8.0 million payable in deferred consideration subject to the achievement of agreed performance hurdles over the first and second 12-month periods post completion
- up to a further $2.0 million in deferred consideration (up to $1.0 million per each 12-month earnout period) based on performance against stretch targets.
IVE Group also expects the acquisition to contribute annual revenue and EBITDA of approximately $23.0 million and $5.5 million respectively.
Bell Potter's analysis
Broker Bell Potter released a new report yesterday which included updated guidance on this ASX communications stock following the acquisition.
The broker said the net impact on underlying EPS forecasts is upgrades of 2%, 4% and 6% in FY26, FY27 and FY28.
Following the acquisition, Bell Potter said the Balance Sheet of IVE Group remains strong and it believes the company still has capacity to make further acquisitions of up to around $30m without needing to use or raise equity and also fund the dividends.
We also believe the Balance Sheet can support an increase in the dividend from 18c in FY26 to 20c in FY27 subject to any further acquisitions not exceeding $30m in the near term.
Price target upside
Bell Potter has also upgraded its price target on this ASX communications stock to $3.25 (previously $3.10).
The broker has maintained its buy recommendation.
Based on yesterday's closing price of $2.86, this indicates an upside of 13.64%.
We have increased the multiple we apply in our PE ratio valuation from 7.75x to 8.25x given the recent demonstrated ability of IVE to make EPS accretive acquisitions and the potential of more to come given the Balance Sheet strength.
Elsewhere, TradingView has an average analyst target of $3.10.
This indicates approximately 8.4% upside.
Online brokerage platform Selfwealth lists this ASX communications stock as undervalued by 14%.
