Morgans updates forecasts to allow for the recent 1H result (few surprises) and the successful completion of the acquisition of SocietyOne.
A key highlight from results, according to the analyst, was the ongoing strength of Autopay originations which now account for 26% of the book.
The target price falls to $2.35 from $2.65 after also factoring-in higher impairment expenses (from accelarated loan growth) and raising longer-term revenue assumptions. The Add rating is maintained.
Sector: Diversified Financials.
Target price is $2.35.Current Price is $1.50. Difference: $0.85 – (brackets indicate current price is over target). If MME meets the Morgans target it will return approximately 36% (excluding dividends, fees and charges – negative figures indicate an expected loss).
