Australia's Judo Capital hits two-week high, Macquarie sees more favourable margins

Judo Capital Holdings

27/11/2025 03:05

** Shares of Australia's Judo Capital JDO.AX rise 5.7% to A$1.59, their highest since November 12

** Macquarie upgrades EPS guidance for bank by 5%, 4%, and 3% in FY26, FY27, and FY28 respectively, expecting more favourable deposit margins than guided by co

** Brokerage raises valuation to A$1.95/share from A$1.90/share on earnings upgrade

** As the banking sector is more focused on savings deposits, term deposit competition has eased, lowering spreads and funding costs; this supports more favourable margins for JDO, which is funded primarily through  term deposits - Macquarie

** Sees broadly flat margins in 1H26 despite co's earlier guidance for weaker margins

** Says co appears very attractive as it trades at less than 10 times its FY27E P/E and below book value, with more than 30% earnings CAGR

** YTD, shares down 12.6%

 (Reporting by Shruti Agarwal in Bengaluru)

 ((Shruti.Agarwal@thomsonreuters.com))