Independent Investment Research

EAS is a diversified financial services company with three operating divisions: (1) Distribution Services; (2) Wealth & Asset Management; and (3) Accounting & Tax. Since we initiated coverage on EAS in December 2015, the company’s share price has increased 44.2% on the back of the company creating value through a combination of acquisitions and organic growth. This was reflected in the FY16 results, adjusting for the non-cash impairment charge. While the company will incur a hit to revenue in FY17 from the loss of the distribution agreement for the Harmony suite of products, continued growth in the company’s core activities in combination with the introduction of new revenue streams will largely replace the lost revenue. We have increased our target price to $1.89 per share, a 29.5% increase from $1.46 in our initiation report released in December 2015. The company has repositioned the business throughout FY16 strengthening the recurring income streams and establishing new revenue streams within the core business of the company.


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