Citi raises earnings view, PT for Australia's Pepper Money
29/02/2024 19:13
** Analysts at Citi lift their earnings forecast for
Australian non-banking lender Pepper Money PPM.AX reflecting
better volume growth
** Brokerage also raises PT to A$1.55 from A$1.40, retains
"neutral" rating
** Lifts its net profit after tax forecasts by about 10% and
6% for FY24 and FY25, respectively
** Says co's recently announced share buyback drives
mid-teens EPS upgrades, and higher payout ratio drives ~60%+
dividend per share upgrades
** "Coupled with improving resi trends, we see a more stable
earnings base emerging" - Citi
** Says co's management has committed to a more disciplined
approach to balance sheet growth and provided hard evidence in
containing asset finance lending assets under management growth
** Four of six analysts rate the stock "buy" and two "hold";
their median PT is A$1.50 – LSEG
** Stock up ~22% YTD, as of last close
(Reporting by Echha Jain in Bengaluru)
((Echha.jain@thomsonreuters.com))