Market News

IVE Group (ASX:IGL) shares soar on Ovato acquisition update

Story Highlights

While investors fled a swathe of ASX shares today, many have flocked to IVE Group, as the marketing solutions company announced the completion of an acquisition to boost its scale and earnings. TipRanks insights are mostly favourable to IGL stock.

IVE Group (ASX:IGL) shares surged 10% in morning trading to hit a new 52-week high of AU$2.50. The stock’s spike followed an update that IVE Group has completed its acquisition of Ovato.

IVE Group provides marketing, communications, and printing solutions. Ovato also provides printing services. The Australian marketing solutions company struck a deal to purchase Ovato for AU$16 million. In addition to expanding its scale, IVE Group is also counting on the acquisition to boost its revenue and earnings in the coming years. 

“IVE has a strong track record of successfully integrating businesses and optimising operating leverage to deliver synergies…when fully integrated, the Ovato acquisition is expected to generate meaningful shareholder value,” commented IVE Group CEO, Matt Aitken.

IVE Groups’s share price forecast 

IVE Group shares have gained around 40% year-to-date and risen more than 50% over the past 12 months. According to TipRanks’ analyst rating consensus, IGL stock is a Moderate Buy. The average IVE Group share price forecast of $AU2.51 implies just over 9.6% upside potential. 

IVE Group scores a nine out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

Final thoughts

If the Ovato acquisition turns out to be a major boost to IVE Group’s financial performance as expected, it could lead to a more stable dividend program from the company. IVE Group shares already offer an above-average dividend yield of 6.77%.


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