In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon key stock buy ideas to guide investors toward expected positive price reactions. The broker also highlight a few stocks with a difficult outlook.

Unfortunately IPH Limited slots into the latter group,as the analyst notes currency headwinds for the stock, given the strong appreciation in the Australian dollar. 

The broker forecasts around 5% earnings (EBITDA) growth for IPH Limited, due to the additional contribution from the XIP acquisition and some organic growth, particularly in the Asian division.

Morgans also expects a strong performance from the domestic patent filing market with growth of 10.8% on the previous corresponding period.

The analyst estimates an interim dividend of 15 cents.

The Add rating and target of $8.42 are unchanged.

Sector: Commercial & Professional Services.

Target price is $8.42.Current Price is $6.38. Difference: $2.04 - (brackets indicate current price is over target). If IPH meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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