Strong earnings growth in the core business was delivered in the second half, with Credit Suisse noting a combination of a lower interest burden through debt reduction and increased end-of-lease income.
Going forward, the broker expects it will take time for new business to fully reach pre-pandemic levels but the combination of improved momentum as well as the annualised run rate of efficiency benefits should drive earnings growth in FY21.
The broker continues to envisage the valuation as supportive and maintains an Outperform rating. Target is raised to $1.90 from $1.25.
Sector: Diversified Financials.
Target price is $1.90.Current Price is $1.80. Difference: $0.10 – (brackets indicate current price is over target). If ECX meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
