Morgans sees upside risk to FY23 forecast earnings as a result of an announced strategic alliance with neobank Volt Corporation, which involves a -$15m investment and 7.6% shareholding in Volt.
The broker expects access to the digital banking services and technology platform will assist Australian Finance Group’s credit decisions. A company-branded Volt-funded digital mortgage product is expected to be made available in the first quarter of 2022.
The add rating and $2.90 target are unchanged.
Sector: Banks.
Target price is $2.90.
