Australia's Latitude Group rises even as Morgan Stanley sees earnings headwinds

Latitude group

18/12/2023 02:32

** Analysts at Morgan Stanley see earnings volatility for
Latitude Group Holdings  LFS.AX 
    ** Shares of the consumer lending services provider rise as
much as 1.7% to A$1.170
    ** Brokerage reduces price target to A$0.99/shr from A$1.06,
maintains "underweight" rating
    ** Morgan Stanley expects volume recovery to be hampered by
cyber attack implications and alternative merchant credit
solutions
    ** Analysts think margins will continue to come under
pressure from higher funding costs on the back of
higher-for-longer interest rates, with LFS unable to quickly
reprice products and merchants
    ** Broker downgrades co's earnings forecast following LFS's
recent comments about impact into FY24 of elevated borrowing
costs and declining consumer spending plus lending demand
    ** Three analysts rate stock "sell" or lower; their median
PT is A$0.95 - LSEG data
        ** Stock down 11.9% YTD, as of last close

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