Credit Corp's US debt-buying outlook draws caution from Jefferies, Morningstar

Credit

04/08/2026 21:09

** Analysts at Jefferies trim their price target for Australia's Credit Corp CCP.AX to A$16.00 from A$17.00
** Financial services provider on Tuesday reported FY26 attributable profit of A$105.5 million  ($74.36 million), compared with A$94.1 million a year ago
** Credit Corp expects U.S. debt-buying investment of A$100 million to A$130 million in FY27
** Brokerage says lower forward supply of debt ledgers in the United States is weighing on purchasing opportunities and prompting lower investment expectations for FY27
** Morningstar says lower expected U.S. purchasing volumes indicate current earnings growth may be difficult to sustain over the longer term
** Research firm also flags rising competition in U.S. debt purchasing as charge-off supply contracts and portfolio prices increase
** All six analysts rate the stock "buy" or higher; their median PT is A$19.15, according to data compiled by LSEG
** Stock has fallen 9% this year, as of last close


($1 = 1.4188 Australian dollars)

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))