JPMorgan assumes coverage on IPH stock with Overweight rating

Published 21/08/2025, 13:56
JPMorgan assumes coverage on IPH stock with Overweight rating

Investing.com - JPMorgan has assumed coverage on IPH Limited (ASX:IPH) (OTC:IPHLF) with an Overweight rating and a price target of AUD5.20, down from the previous target of AUD6.30.

The firm notes that IPH is experiencing challenges in Australia, with continuing declines in second-half 2025 market share, which has fallen to 28.2%.

Despite these issues, JPMorgan identifies several positive factors for fiscal year 2026, including AUD8-10 million in cost synergies, full-year B&P sales contribution, and CIPO recovery.

The research note points out that while IPH’s gearing has increased following a share buyback, free cash flow remains strong for the intellectual property services company.

JPMorgan maintains its Overweight recommendation despite lowering the price target, citing that while headline multiples are cheap, improved returns and stabilization in share and volume trends remain critical for a sustained multiple re-rating.

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