Macquarie estimates the recent issuance of residential and commercial mortgage-backed securities (RMBS) will support lower funding costs and help negate pressure on the net interest margin from competitors.
With no changes to earnings forecasts or the $2.94 target price, the broker retains its Outperform rating.
Sector: Banks.
Target price is $2.94.Current Price is $2.05. Difference: $0.89 – (brackets indicate current price is over target). If AFG meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges – negative figures indicate an expected loss).
