Strong property market likely to benefit Aussie mortgage brokers - Citi

Liberty

05/08/2021 01:28

** Citi looks to upcoming FY21 results and FY22 forecast
from mortgage brokers Australian Finance Group  AFG.AX  and
Liberty Financial Group  LFG.AX  for cues on share price growth
    ** Brokerage expects FY22 to be another year dominated by
strong property market conditions as funding cost tailwinds
continue and volumes improve
    ** "We see both stocks as attractive ways to play the
housing market, with better growth prospects than the banks, but
trading on a ~20% discount," Citi analysts say in a note
    ** For AFG ("buy", A$3.60 PT), forecasts FY21 net profit
after tax (NPAT) of A$50 mln ($36.9 mln), ~8% revenue growth and
final dividend of 12.8 Australian cents/share
    ** For LFG ("buy", A$8.60 PT), forecasts FY21 net profit
after tax (NPAT) of A$229 mln, ~22% revenue growth and final
dividend of 24 Australian cents/share
    ** Up to Wednesday's close, AFG up 2.7% this year, while LFG
down 5.1%

($1 = 1.3552 Australian dollars)

 (Reporting by Shashwat Awasthi)
 ((Shashwat.Awasthi@tr.com
mailto:Shashwat.Awasthi@thomsonreuters.com))