Jefferies cuts PT on Aussie debt collector Credit Corp, but sees green shoots

Credit

18/10/2023 21:56

** Jefferies cuts price target on Credit Corp Group Ltd
 CCP.AX  to A$19.91 from A$23.23, retains "buy" rating
    ** CCP, which buys and collects debt from companies or
individuals facing money crunch, on Wednesday warned of an
impairment of its U.S. debt ledger
    ** Says impairment will represent about 14% of carrying
value of U.S. debt ledger assets; impairment estimated to
produce one-off NPAT reduction of A$45 mln ($28.51 mln)
    ** CCP shares tanked 30.5% on Wednesday to A$11.970, its
worst closing level since March 2020
    ** Brokerage says following Wednesday's rout, the stock is
in oversold territory
    ** Adds CCP is in a favourable position with significant
changes in mortgage competition in Australia; group's growing
U.S. market share allows increased purchases in near-term
    ** Four of seven analysts rate CCP "buy" or higher, and
three rate it "hold"; their median PT is A$20.61 – LSEG data
    ** CCP down 36.3% this year, as of last close


($1 = 1.5783 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))