Challenger Bull Anticipates A$1 Bln Capital Release -- Market Talk

Dow Jones
2025/07/11

0055 GMT - Challenger's bull at Citi sees potential for a A$1 billion capital release if proposed regulatory changes come into force. Analyst Nigel Pittaway acknowledges that the Australian prudential regulator's proposals are complex, but is clear that the investment manager will be able to release substantial capital. Pittaway anticipates an initial A$200 million release from changes to the illiquidity premium, the reference benchmark and asset side changes. This will probably be dwarfed by releases including from the potential liquidation of alternative assets, he says. A$800 million looks likely, he writes in a note. Citi raises its target price 22% to A$9.20 and keeps a buy rating on the stock, which is down 0.4% at A$8.08. (stuart.condie@wsj.com)

 

(END) Dow Jones Newswires

July 10, 2025 20:55 ET (00:55 GMT)

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