Analysts expect Australia's Credit Corp earnings to grow in FY24

Credit

01/08/2023 20:54

** Analysts at Jefferies and Morningstar see earnings growth
for Australia's Credit Corp Group  CCP.AX  throughout FY24,
despite the company reporting a fall in profit for FY23  
    ** Co's loan book has had a record start for FY24, which
brokerage expects will help earnings further - Jefferies 
    ** Morningstar expects co's EBITDA to grow 22% per year over
the next five years, sees upside to revenue over the long term
    ** Brokerages, however, lower PT and fair value estimate on
fallen FY23 profit; Jefferies cuts to A$23.23 from A$23.54 and
Morningstar cuts to A$22.50 from A$24
    ** Jefferies says with more favourable pricing expected as
supply begins to increase over FY24, there is strong chance of
revised FY24 purchasing guidance before 1Q24 AGM by CCP 
    ** Four of seven analysts rate the stock "buy" or higher,
two "hold" and one "sell" ; their median PT is A$23.23 –
Refinitiv data
    ** Stock has risen 9.7% this year, as of last close

 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))