Despite a miss for InvoCare's FY22 result as higher costs weighed on margins, Morgans believes headwinds will moderate and maintains its Add rating. Those headwinds included labour constraints, supply chain pressures and inclement weather.

FY22 operating earnings (EBITDA) and operating profit missed consensus forecasts by -4% and -13%, respectively, and the broker lowers its target to $11.10 from $12.80 in reaction.

Management noted trading so far in the 1Q was positive and in line with expectations.

The analyst believes recent share price weakness provides a good entry point for long-term investors.

Sector: Consumer Services.

Target price is $11.10.Current Price is $11.06. Difference: $0.04 - (brackets indicate current price is over target). If IVC meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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