Impact on Latitude Group to be cost-driven post cyber attack - Morgan Stanley

Latitude group

14/04/2023 01:22

** Analysts at Morgan Stanley think the impact of a recent
cyber attack on Australia's Latitude Group  LFS.AX  will largely
be related to costs, with limited brand damage and volume
reduction
    ** The digital payments and lending firm was initially hit
by a "malicious" cyber attack on March 16 which led to nearly 8
mln driver license numbers being stolen
    ** Brokerage also feels co will accelerate its tech
transformation under the new CEO; forecasts A$18 million ($12.21
million) post-tax impact for replacement of stolen documents and
others
    ** Adds impact on volumes will not be material as co has
said majority of its systems are back online
    ** However, brokerage cuts FY23 income by 1% on the back of
a minimal impact; cuts target price by 4% to A$1.15
    ** Stock has fallen 3.8% this year, as of last close 

($1 = 1.4743 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))