FY19 results were in line with expectations. Net profit guidance of $75-77m is below Morgans’ original forecasts but appears conservative. The broker expects FY20 will benefit from earnings uplift in the US and an increase of 16% in the consumer lending book as well as significantly lower debt.
Increased capital deployment is the key to upside over the next year, the broker suggests. Add rating maintained. Target is raised to $27.00 from $23.70.
Sector: Diversified Financials.
Target price is $27.00.Current Price is $25.73. Difference: $1.27 – (brackets indicate current price is over target). If CCP meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
