InvoCare has acquired two pet crematoria with a combined presence across five states. The upfront consideration is $38.3m with a further $11.5m in earn-outs over two years.

While the acquisition is accretive the deal lacks strategic appeal, Morgan Stanley asserts, as it is unlikely to move the dial on earnings in the foreseeable future.

Equal-weight rating. Target is $10.30. In-Line industry view.

Sector: Consumer Services.

Target price is $10.30.Current Price is $11.50. Difference: ($1.20) - (brackets indicate current price is over target). If IVC meets the Morgan Stanley target it will return approximately -12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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