Brokerages raise earnings estimate for Australia's Judo Capital

Newpoint Financial

23/01/2024 21:04

(Updates)
    ** Analysts at Morningstar raise fair value estimate on
Australia's Judo Capital  JDO.AX , the holding company for Judo
Bank, by 9% to A$1.20/share
    ** Morningstar expects 20% growth in the firm's loan book to
A$10.7 billion ($7.02 billion) by June 2024
    ** Morningstar upgrades FY24 pre-tax profit estimate by 43%
and 6% for FY25
    ** Morningstar says management appears to be leaning towards
preserving margin and profit in the short term even if it means
slowing loan growth
    ** Morningstar raises fiscal 2024 and 2025 net interest
margin estimates by 10 basis points and 5 basis points to 2.9%
and 2.95%, respectively
    ** Citi lifts cash earnings forecasts to A$73 million in
FY24 and A$63 million in FY25; but retains "Sell" rating 
    ** Stock fell 24.5% in 2023


($1 = 1.5237 Australian dollars)

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