Credit Corp’s first-quarter result was strong overall, according to Morgans, with strong cash collection and a rebound in lending demand.
Compared to the previous corresponding period total collections were up 16%, Aust/NZ collections were up 4% and US collections were up 34%.
The company reaffirmed all guidance metrics, including EPS of 89-112cps, DPS 45-55cps, and profit (NPAT) of $60-75m.
Purchase of debt ledgers (PDL) is tracking reasonably notes the broker, with the return of two Australian sellers.
The Add rating is unchanged and the target is decreased to $21.20 from $21.25.
Sector: Diversified Financials.
Target price is $21.20.Current Price is $19.15. Difference: $2.05 – (brackets indicate current price is over target). If CCP meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
