IFL – Citi rates the stock as Buy

By Broker News | More Articles by Broker News

IOOF’s AGM revealed the fund manager will put away a mere $10m in estimated remediation cost in the wake of the RC. No systemic issues were uncovered other than some fees-for-no-service. The broker thinks the market will find this hard to believe given the extent of other remediation provisions announced to date.

The risks of other possible ramifications, such as a ban on vertical integration, seem low, but the broker still assumes some changes to its platform will be needed post-RC. IOOF is optimistic about being able to complete its ANZ wealth management acquisition by March. The broker sees risks as priced in and retains Buy and an $8.65 target.

Sector: Diversified Financials.

Target price is $8.65.Current Price is $7.06. Difference: $1.59 – (brackets indicate current price is over target). If IFL meets the Citi target it will return approximately 18% (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 →