Challenger (ASX:CGF) is expected to report fiscal first-half normalized net profit after tax of AU$230 million, compared to AU$236 million in the first half of fiscal 2025, said Jefferies in a Monday note.
Jefferies said that, similar to the first half of fiscal 2025, the company's capital and operating earnings margin is expected to be affected by the timing of insurance-linked securities bond distributions, which typically distribute income in the second half of the fiscal year.
The capital and operating earnings margin for the fiscal H1 is forecast at 3.11%, the note added.
The investment firm expects Challenger to maintain fiscal year 2026 guidance, targeting basic earnings per share between AU$0.66 and AU$0.72.
Jefferies kept a hold rating on Challenger and raised its price target to AU$9.60 from AU$8.70.