0104 GMT - Judo Capital's bull at Morgans reckons that the stock's recent slump has priced in a significant probability that it will fail to hit guidance. Maintaining a buy rating on the stock, analyst Nathan Lead acknowledges that the business lender is higher risk and more cyclically exposed than Australia's major banks, but tells clients that it also offers higher potential returns. He writes in a note that the stock is now trading at just 0.6 times book value and 6.8 times his FY 2027 earnings forecast. Lead suspects that management's FY 2027 guidance is conservative given the fact they had to downgrade their current year outlook. Morgans cuts its target price 32% to 1.47 Australian dollars. Shares are down 2.6% at A$0.8375. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
June 28, 2026 21:04 ET (01:04 GMT)
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