Morningstar lifts fair-value estimate for Credit Corp, sees earnings growth in fiscal 2027

Credit

Tue 22:52

** Morningstar lifts fair value estimate for Australia's Credit Corp CCP.AX by 2% to A$12.60 per share, citing the time value of money
** Morningstar says that the financial services firm's shares are overvalued, as the market may be bullish on several fronts that it thinks are unlikely to hold
** Investment research firm expects CCP's earnings to grow again in fiscal 2027, as per the company's outlook, on a one-off purchase and efficiency gains
** Morningstar says consumer lending should limit the earnings decline for CCP, as a tougher economy lifts demand
** Expects CCP's loan book to grow about 9% per year on average over the next five years
** 6 of 6 analysts rate the stock "buy" or higher, set median PT at A$18.25, according to data compiled by LSEG
** Stock up 3.4% YTD, as of last close


 (Reporting by Tejas Harish in Bengaluru)
 ((tejas.harish@thomsonreuters.com))