Judo Capital's Bull Still Likes Growth Prospects

Dow Jones
08/19

0113 GMT - Judo Capital keeps its bull at Morgans after flagging more strong growth across its current fiscal year. Analyst Nathan Lead keeps a buy rating on the Australian business lender, telling clients in a note that he expects 12% annual growth in gross loans and advances, which is consistent with the company's target of above-industry growth. Lead is looking for a FY 2027 net interest margin of 3.15%, up from the 3.13% that Judo reported for the 12 months through June 30. He acknowledges the risks that come with Judo's higher relative exposure to economic cycles, but sees compensation from the potential returns on offer. Morgans trims its target price 3.4% to 1.42 Australian dollars. Shares are down 4.7% at A$1.02, but still up by 10% so far this week.

 

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