Macquarie rates Steadfast Group (ASX:SDF), Australia's largest insurance broker network, as Outperform as it initiates coverage on the recently floated...

Macquarie rates Steadfast Group (ASX:SDF), Australia's largest insurance broker network, as Outperform as it initiates coverage on the recently floated company. The bank has set a $1.60 price target on the stock arguing that while it now looks fully priced, further growth over the medium-term appears promising given management's determination to pursue further acquisitions. According to analyst Adam Simpson, the co-ownership model adopted aligns the interest of both shareholders and brokers and anticipates the group will benefit from cost-savings as a result of more streamlined back office operations. The bank stressed Steadfast's solid balance sheet enables management to pursue EPS- accretive acquisitions, describing it as the natural acquirer of further interests in Steadfast Network brokers. (VIEW LINK)