Australia's L1 Group slips, Morningstar says shares overvalued

By Reuters News

** Shares of Australia's L1 Group L1G.AX fall 1.7% to A$1.15, set for worst session since October 1 if current losses hold

** Morningstar analysts say group's current share price reflects expectations of strong investment returns, sustained net inflows and expanding margins, a combination they view as unlikely

** Adds Platinum, which the asset manager merged with last year, keeps losing funds and expects L1 Capital inflows to also slow in the medium term

** Forecasts underlying net profit after tax to average A$177 million ($123.88 million) per year over the next five years, below the A$189 million earned in FY26

** Notes co's funds under management continued to grow in the first quarter of FY27, reaching A$19.3 billion in September

** Says L1's strategies are still drawing inflows, and outflows from Platinum are smaller than expected

** Stock up 8.5% YTD


($1 = 1.4288 Australian dollars)

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