After reviewing capital concerns, Macquarie concludes that Challenger is in a materially stronger capital position, compared with peers during the GFC, amid the now tighter regulatory oversight.
The broker continues to like the long-term growth theme as the population ages and does not believe global trends are representative of the Australian market conditions. Outperform rating and $4.50 target retained.
Sector: Diversified Financials.
Target price is $4.50.The current Price is $4.04. Difference: $0.46 – (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).
