Australia's Resimac Group rises despite Citi's TP, earnings forecast downgrade

Resimac

04/09/2024 02:12

** Shares of Resimac Group  RMC.AX  up 1.7% at A$0.92
    ** Citi cuts target price for the non-bank lender to A$0.90;
maintains "neutral (High Risk)" rating
    ** Citi cuts earnings forecasts by 25% and 9% for FY25 and
FY26, respectively 
    ** Brokerage says estimate downgrade is primarily driven by
higher costs, slightly lower revenue forecast 
    ** Co reported on Thursday FY24 result with normalized NPAT
of A$43.1 mln ($28.92 mln), slightly below Citi's estimate of
A$43.7 mln, but in the middle of co's pre-guided range of A$42
mln to A$44 mln
    ** Stock has slipped 13.4% this year, as of last close

   ($1 = 1.4901 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))