Morningstar sees earnings volatility in near term for Australia's Humm Group

Humm

04/06/2024 22:46

** Analysts at Morningstar believe Humm Group's  HUM.AX 
earnings will remain subdued in the near term due to higher
funding costs and increased bad debts
    ** Brokerage maintains fair value estimate of A$0.50/shr
    ** Despite headwinds, we still expect earnings recovery from
fiscal 2025 via growth in less contested commercial financing
space, tighter credit controls and cost reductions - Morningstar
    ** Analysts at brokerage expect Humm's commercial financing
business to constitute roughly two-thirds of normalized NPAT in
the four years to fiscal 2028
    ** Stock has fallen 12.1% YTD, as of last close

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((shivangi.lahiri@thomsonreuters.com))