Citi optimistic on Australia's FleetPartners due to potential dividends

FleetPartners

18/11/2024 23:37

** Citi says Australia-based vehicle leasing firm
FleetPartners  FPR.AX  has growth potential with possible
dividend resumption and continued share buybacks, despite facing
short-term challenges
    ** Maintains "buy" rating for FPR and PT of A$3.90
    ** Brokerage sees FPR's assets under management to hit A$2.5
bln ($1.63 bln) and net operating income (NOI) to grow 22% by
FY27
    ** Citi sees NOI margin improvements by FY26 for the firm
despite uncertainty, after a shift towards its salary-packaged
vehicle leasing segment
    ** Reduces FY25 NPAT forecast by about 1% due to NOI margin
pressures, but anticipates improvement by FY26
    ** Adds, firm may resume dividends in FY27 as it anticipates
accruing franking credits in FY26 with FY25 share buybacks
outlook of $52 mln
    ** Stock up 1.7% YTD, as of the last close

($1 = 1.5378 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru)
 ((Tanishk.Kumar@thomsonreuters.com))