Jefferies and Morningstar cut PT on Australia's Credit Corp after missing HY estimates

Credit

03/02/2026 19:16

** Jefferies and Morningstar cut Credit Corp's CCP.AX price target and fair value estimate after the financial services provider's first-half earnings missed estimates

** Co on Tuesday reported 1H26 NPAT of A$44.1 million ($30.92 million), missing Jefferies estimates of A$50 million

** Morningstar lowered its fair value 8% to A$13.20, citing weaker U.S. debt‑ledger volumes and softer cash collections

** However, adds that the sharp pullback may be seasonal, noting the firm’s typically stronger second half with heavy first‑half marketing spend expected to translate into improved earnings in FY26’s back half

** Jefferies nudges FY26 forecasts down 3%, putting NPAT at A$106 million, and cuts PT to A$17 from A$19.65 on earnings revisions, while maintaining ‘Buy’ rating

** However, it adds that it remains highly confident in the CCP meeting its full‑year outlook and views Tuesday's sell‑off as an overreaction

** Stock down 15.43% YTD as of last close

($1 = 1.4261 Australian dollars)

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))