Citi says more risks means more volumes, initiates with 'buy'

Liberty

17/05/2021 01:32

** Citi says insurance agency Liberty Financial Group
 LFG.AX  is well placed to drive strong volume and earnings
growth in FY21 through profitable niche segments where other
lenders have pulled back
    ** Initiates coverage with PT at A$8.50, and rating at "buy"
    ** Brokerage says LFG is well placed to continue to drive
strong volume and earnings growth through profitable niche
segments where other lenders have pulled back
    ** Forecasts underlying NPATA of A$236 mln ($183.18 mln),
12% ahead of the consensus equivalent
    ** Forecasts a ~7% earnings CAGR from FY22+, with upside
risk should macro-prudential controls be implemented
    ** Three of three analysts rate the stock "buy"; their
median PT is A$8.90 – Refinitiv Eikon data
    ** Shares of LFG rise as much as 0.7% to A$7.1 
    ** Stock has fallen nearly 10% this year as of last close
    



($1 = 1.2883 Australian dollars)

 (Reporting by Riya Sharma in Bengaluru)
 ((Riya.Sharma@thomsonreuters.com;))