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Highlights

  • Steadfast Group’s share price target raised to AUD 7.00, implying a 17.65% upside.

  • Macquarie Research reaffirms “Outperform” rating amid strong earnings growth.

  • 1H25 results reveal 20.9% increase in underlying NPAT and 15.6% dividend hike.

Steadfast Group Ltd (ASX:SDF), Australia's largest insurance broking network, has received a firm BUY rating from analysts, bolstered by impressive first-half FY25 results and a positive outlook. According to Macquarie Research, which has rated the stock as “Outperform”, the revised price target of AUD 7.00 suggests a potential upside of 17.65% from the current market price of AUD 6.00 as of 4 July 2025.

The company's valuation has improved steadily, with the current mean target price rising to AUD 6.81, up 13.50% from previous estimates. 

Financial Performance in 1H25

Steadfast reported posted underlying revenue of $881.3 million, up 11.5% year-on-year in the first half of FY25. Its underlying EBITA reached $262.4 million, marking a 14.6% increase, while underlying NPAT climbed 20.9% to $128.1 million.

Of particular note is the surge in underlying NPATA, which rose 19% to $154.6 million. Earnings per share also demonstrated healthy growth, with diluted EPS up 14.1% to 11.6 cents per share. 

Dividend Boost 

The Board of Steadfast declared a fully franked interim dividend of 7.8 cents per share, up 15.6% from 6.75 cents in 1H24. 

Key dividend dates include an ex-dividend date of 3 March 2025 and a payment date of 27 March 2025. The dividend is eligible for the Dividend Reinvestment Plan (DRP) without any discount.

Disciplined Acquisition Strategy Enhances Growth Prospects

In the year to date, the group has completed $198.9 million in acquisitions, involving both increased equity stakes in existing subsidiaries and international deals. These strategic investments are expected to deliver long-term returns and align with the company's growth roadmap.

While technical accounting rules have affected how some acquisition-related EBITA is recorded, the group has reaffirmed its FY25 guidance. The revised EBITA range now stands between $585 million and $595 million, while NPAT and NPATA targets remain unchanged at $290–300 million and $340–350 million, respectively. The company also maintains its forecast of 12%–16% growth in diluted EPS for FY25.

Outlook

The key assumptions—such as mid-single digit insurance premium increases and the completion of $300 million in acquisitions—remain intact and Steadfast Group is expected to be on track to meet or exceed its FY25 performance goals.