Citi analysts remain of the view Challenger won’t meet its own guidance for FY17 Life CoE performance, but they also believe the improved outlook for the future from the higher proportion of longer-dated sales suggests the shares are not as expensive as previously thought.
On the flipside, Citi maintains of the belief Challenger will have to raise additional capital, exact timing unknown. On the combination of all of the above, rating upgraded to Neutral from Sell.
Sector: Diversified Financials.
Current Price is $12.01. Target price not assessed.