On a full year run-rate basis Morgans calculates gross loan book growth is running above expectations, after MoneyMe provided a third quarter business update. Other highlights were considered to be the stable asset quality and $108m of originations.
The broker raises EPS forecasts for FY21 and FY22 by 3% and 5% on higher loan growth forecasts and higher earnings (EBITDA) margin estimates. The target price is increased to $2.04 from $1.97 and the Add rating is unchanged.
Morgans continues to expect the overall provisioning level to decrease with an improving macroeconomic outlook.
Sector: Diversified Financials.
Target price is $2.04.Current Price is $1.39. Difference: $0.65 – (brackets indicate current price is over target). If MME meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges – negative figures indicate an expected loss).
