CGF – JP Morgan rates the stock as Neutral

By Broker News | More Articles by Broker News

JP Morgan rates the stock as Upgrade to Neutral from Underweight

Challenger’s first-half net profit fell a tad short of the broker due to margin pressure and capital surplus erosion.

But JPMorgan notes strong annuity sales, a confidence-inspiring shift into less capital intensive products, receding DSS risk and growth potential in Murray.

The broker expects margin pressure to continue but pricing pressure to wane and says net book growth was strong in the first half.

Rating upgraded to Neutral from Underweight and the target price rises to $6.40 from $6.20.

Sector: Diversified Financials.

Target price is $6.40.Current Price is $6.45. Difference: ($0.05) – (brackets indicate current price is over target). If CGF meets the JP Morgan target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).

Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →