Challenger’s result beat the broker and hit the top end of guidance. Funds management fell a little short due to a higher cost base following the Dexion acquisition but the Life division delivered on growth, margins, credit quality and capital strength, the broker suggests.
Outperform retained, target rises to $8.61 from $8.56.
Sector: Diversified Financials.
Target price is $8.61.Current Price is $7.18. Difference: $1.43 – (brackets indicate current price is over target). If CGF meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).