BNPL earnings were a little lower than Credit Suisse expected in the first half and no interim dividend was declared.
The broker understands the reason for no dividend stems from a desire to invest in new products and markets but was surprised by the extent of the negative share price reaction.
Credit Suisse has no issue with the strategy and notes underlying costs are being well managed. Valuation is also undemanding, although the broker holds back from taking a more positive view not yet convinced the business can catch up with major competitors.
Neutral. Target is reduced to $1.20 from $1.40.
Sector: Diversified Financials.
Target price is $1.20.Current Price is $1.08. Difference: $0.12 – (brackets indicate current price is over target). If HUM meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
