Citi downgrades Australia's Resimac to 'neutral', cuts PT

Resimac

29/08/2023 21:41

** Brokerage Citi lowers price target on Resimac Group Ltd
 RMC.AX  to A$1.10 from A$1.20 and downgrades rating to
"neutral" from "buy"
    ** The consumer lender's FY23 normalised NPAT of A$73.7 mln
is a modest beat to expectations - Citi
    ** Brokerage attributes move to "neutral" rating to
competition risks, funding costs and rising arrears
    ** Lowers FY24 earnings forecasts by 6% and FY25 forecasts
by 13%
    ** 2 of 6 analysts rate the stock "buy" or higher, 2 "hold"
and 2 "sell"; their median PT is A$1.05 – Refinitiv data
    ** Stock up 2.9% this year, as of last close

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com))