The broker had been on research restriction for Australian Finance Group’s capital raising but returns to retain an Outperform recommendation. Funding is now in place to support book growth, the broker notes, and margin clarity has increased with funding renewal and securitisation market activity.
Target slips to $1.93 from $1.95 on a roll-forward to more normalised earnings in FY22.
Sector: Banks.
Target price is $1.93.Current Price is $1.80. Difference: $0.13 – (brackets indicate current price is over target). If AFG meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
