** Morningstar cuts fair value estimate on Australia's McMillan Shakespeare to A$17 from A$18

** Brokerage reduces estimate owing to lower medium-term growth expectations for novated leases and higher projected expenses in the plan support services division

** We expect continued growth in novated leases as cost-of-living pressures encourage employees to seek vehicle financing through these arrangements - Morningstar

** Brokerage however expects future novated leasing yields to decline from FY24 levels due to increased vehicle supplies, including EVs

** Adds, despite revised fair value, shares remain modestly undervalued at current levels

** Stock has fallen 5% this year, as of last close

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))