March-quarter lodgements held above $20bn for the fifth straight quarter, demonstrating a skew to Australian Finance Group’s higher margin Home Loan product, reports Macquarie.
Australian Finance Group’s Home Loan lodgements rose 20% to $2.2bn in the quarter.
Macquarie says the company is on track to meet the broker’s forecast for its securitisation loan book of $4.7bn by June – up 17.5% on December 21.
Outperform rating, $2.94 target price and earnings forecasts are retained.
Sector: Banks.
Target price is $2.94.Current Price is $2.10. Difference: $0.84 – (brackets indicate current price is over target). If AFG meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges – negative figures indicate an expected loss).
