Market Chatter: Non-Bank Lenders' Share Rally Soon to End, Says Citi

MT Newswires Live

Jul 04

Pepper Money (ASX:PPM) and Australian Finance Group's (ASX:AFG) share rally has been based on market expectations of a 3.1% terminal cash rate, which is now fully priced into their shares, The Australian reported Friday, citing Citi analyst Thomas Strong.

Citi believes that earnings for these companies are expected to build through the financial year 2026, but recent capital management actions, particularly from Pepper Money, are already factored in.

The investment firm sees limited short-term catalysts, with current price-to-earnings multiples at cyclical highs, and expects the shares to stabilise until confidence in the earnings recovery strengthens.

Citi downgraded Pepper Money and Australian Finance Group to neutral with price targets of AU$1.75 and AU$2.10, respectively, per the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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This information is believed to be from reliable sources but may include rumor and speculation. 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This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"AFG.AU","symbol_name":"AUSTRALIAN FINANCE GROUP LTD","start_time":0,"source_url":"https://www.mtnewswires.com/","article_id":"2548391063","we_media_id":"1092851196","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2548391063","pubTimestamp":1751590520,"columns":[],"sourceInfo":{"source_id":"mtnewswires_news","name":"MT Newswires"},"weMediaInfo":{"media_name":"MT Newswires Live","introduction":"The most recognized names in North America, Europe and Asia rely on MT Newswires to power their applications. 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This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}