ECX – Credit Suisse rates the stock as Upgrade to Outperform from Neutral

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Credit Suisse believes a strong positive reaction in the share price to the first half result stems mainly from evidence that the underlying fleet and novated lease business is holding a relatively flat trajectory.

There is increased comfort that the company should be able to repair its balance sheet. Disposal of the non-core businesses, Right2Drive, Grays and commercial equipment finance, should enable a reduction in debt.

Credit Suisse upgrades to Outperform from Neutral and raises the target to $1.40 from $0.88.

Sector: Diversified Financials.

Target price is $1.40.Current Price is $1.17. Difference: $0.23 – (brackets indicate current price is over target). If ECX meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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