S&P/ASX 200 Index (ASX: XJO) shares are down 0.5% to 8,681 points on Thursday.
Among the 11 market sectors of the ASX 200, consumer staples is in the lead today, up 1.4%.
The materials and mining sector is the laggard, down 2.3%.
Let's check out some new ratings from the experts.
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IDP Education Ltd (ASX: IEL)
The IDP Education share price is $2.12, up 1.9% today.
Ord Minnett has a buy rating on this ASX 200 consumer discretionary share.
In a new note, the broker said:
IDP Education Limited provides student placement services in Asia, Australasia, and internationally.
IDP Education (IDP) disclosed that it has rejected two unsolicited and non-binding takeover approaches from Blackstone Singapore Pte Ltd, which is part of the global private equity firm Blackstone Inc. The latest proposal offered $2.50 per share in cash.
On our numbers, the bid equates to an FY27 price-to-earnings multiple of approximately 13.2x, but this is on depressed earnings.
Unsurprisingly, IDP's Board has unanimously rejected the proposal, stating that it "substantially undervalues IDP and is not in the best interest of shareholders".
The Directors highlighted that it considers the approach highly opportunistic, given the international education sector is facing significant headwinds (we point to policy uncertainty and weaker student visa issuance across key markets), which have temporarily depressed valuations.
Further, it does not factor in the upside from IDP's multi-year transformation program.
Macmahon Holdings Ltd (ASX: MAH)
The Macmahon Holdings share price is $1.14, up 2% today.
Ord Minnett has a hold rating on this ASX 200 materials share.
The broker commented:
Macmahon Holdings Limited engages in the process of surface mining, underground mining and mining support, and civil infrastructure services to mining companies in Australia and Southeast Asia.
Macmahon Holdings (MAH) has agreed to acquire Aspect Engineering Solutions in a transaction valued at an enterprise value to earnings before interest and tax (EV/EBIT) multiple of approximately 5–6x, depending on the final earn-out.
The deal will be funded from existing cash reserves and includes an upfront payment of $30 million, annual retention payments of $6million over five years, and performance-based earn-outs of $15–30 million.
MAH can choose to settle the retention and earn-out payments in shares rather than cash.
The acquisition looks financially attractive.
After incorporating the acquisition costs and earnings contribution from Aspect into our numbers, our EPS estimates are revised higher by 3% in FY27 and 6% in FY28. Our target price increases to $1.10 from $1.00 following the positive earnings changes.
Transurban Group (ASX: TCL)
The Transurban share price is steady at $12.96 on Thursday.
Morgans has a trim rating on this ASX 200 industrials share.
The broker said:
TCL has increased its exposure to the Sydney market via acquisition of additional equity stakes in key tollroads.
While we view positively the deployment by TCL of capital into markets and assets that it knows well, we struggle to see the cashflow benefit for investors at the acquisition price paid particularly in the context of the higher rate environment.
Target price -50 cps to $12.03/s as a result of the forecast update and adjusting our DCF discount rate higher to part-risk for the rise in risk-free rates.
We retain a TRIM rating at current prices, given potential TSR of -3%.
