Macquarie notes Steadfast Group's FY22 earnings (EBITA) guidance and the broker's own FY23 estimates do not include any contribution from executing on transactions that utilise it's new debt capacity of $315m.

Management intends to use this debt, along with available cash to fund the previously announced Trapped Capital Project pipeline and other acquisitions in FY22. The Outperform rating and $5.40 target price are retained.

Sector: Insurance.

Target price is $5.40.Current Price is $5.12. Difference: $0.28 - (brackets indicate current price is over target). If SDF meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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