March quarter annuity sales were soft, Morgans observes, down -13%. Nevertheless, net book growth was solid because of a slowing of the annuity run-off rate.
The broker likes the story longer term, given a strong organic growth profile, but considers, even with the recent share pullback, that the stock is fair value. Hold rating maintained. Target reduced to $11.75 from $12.03.
Sector: Diversified Financials.
Target price is $11.75.Current Price is $10.78. Difference: $0.97 – (brackets indicate current price is over target). If CGF meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).