Humm Proposal Looks Low to Its Bull at Shaw -- Market Talk

Dow Jones
2025/06/27

0340 GMT - The low price being offered for Humm Group suggests to its bull at Shaw & Partners that the Australian credit provider's chairman is merely trying to flag its availability. The family office of Humm's chairman has offered A$0.58 a share, compared with Shaw analyst Larry Gandler's net-tangible asset estimate of A$0.85. Gandler tells clients in a note that the non-bank financial sector is ripe for consolidation and speculates that the proposal might be intended to put Humm in play. He observes that the proposal values Humm at about 4 times the average analyst forecast for its fiscal 2026 net profit. This compares with a 7x multiple across the sector, he adds. Shaw has a buy rating and A$0.90 target price on the stock, which is up 1.8% at A$0.565. (stuart.condie@wsj.com)

 

(END) Dow Jones Newswires

June 26, 2025 23:40 ET (03:40 GMT)

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