Citi raises PT on Australia's Challenger, sees benefits in regulator proposed measures

Challenger

10/07/2025 22:07

** Citi raises price target on investment manager Challenger CGF.AX to A$9.2, retains "buy" rating

** Says new capital settings for company's annuity products proposed by regulator APRA are complex to fully interpret but sees benefits on implementation

** If the changes are implemented, it could lead to substantial capital release for CGF, lower statutory profit volatility and less risk of needing to liquidate assets in a stress scenario - brokerage

** CFG announced in mid-June that it welcomed APRA's consultation on the proposed changes

** Ten out of 11 analysts rate the stock "buy" or stronger, one rates "hold"; with a median price target of A$7.8, according to data compiled by LSEG

** Shares up 34.9% YTD, as of last close

(Reporting by Jasmeen Ara Shaikh in Bengaluru)

((JasmeenAraIslam.Shaikh@thomsonreuters.com;))