According to Morningstar, Steadfast Group’s (ASX:SDF) recent acquisition of U.S.

private insurance agency ISU Group may not be its final purchase in the US.

The financial services firm believes that Steadfast Group’s approach is logical.

Morningstar appreciates the small scale of the acquisition, which allows the company a better understanding of the market without placing substantial capital at risk.

Morningstar notes that the deal, expected to increase earnings per share, is small considering the brokerage’s previous year 2024 EBITDA forecast of AUD 517 million.

The fragmented U.S.

market presents significant profit opportunities for Steadfast to pursue further acquisitions, and the company is well-positioned to organically increase market share by attracting network members with superior offerings.

Morningstar maintains a fair value estimate of AUD 6.00 for Steadfast.

Five out of eleven analysts rate the stock as ‘buy’ or higher, with six holding.

The median price target is AUD 6.40, according to LSEG data.

Steadfast’s stock has risen by 1.3% year-to-date.

Steadfast Group is a prominent general insurance broker in Australia.