Challenger reported net book growth of 3.1% in the Sep Q, underpinned by annuity sales. An announced annuity partnership with Netwealth ((NWL)) should support growth, the broker notes.
Guidance for 8-12% FY19 profit growth has been maintained and the broker retains Outperform. Target rises to $12.50 from $12.40.
Sector: Diversified Financials.
Target price is $12.50.Current Price is $11.27. Difference: $1.23 – (brackets indicate current price is over target). If CGF meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).