Australia's Latitude Group FY23 outlook misses Citi's estimates

Latitude group

28/05/2023 22:27

** Latitude Group  LFS.AX  FY23 guidance missed Citi's
estimate
    ** Fintech firm on Friday slashed its FY23 earnings outlook
due to higher credit losses and provisions associated with a
recent cyberattack 
    ** Citi cuts PT to A$0.95 from A$1.1, maintains "sell"
rating 
    ** Citi sees earnings risk is to the downside, with further
one-offs likely 
    ** Citi finds LFS's A$26 mln ($17.64 mln) provision for
customer remediation costs is large
    ** Brokerage continues to expect in 2H23 a A$50 mln
provision for civil penalties and A$40 mln to address technology
deficiencies
    ** Citi lowers its FY23 core net profit by 86% to A$15.3 mln
    ** YTD Stock is down 4.2%


($1 = 1.4743 Australian dollars)

 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))