FY21 results were in line with Macquarie’s estimates. Activity has remained elevated despite the lockdowns.
The broker considers the outlook supported by mortgage market lodgement activity, while the valuation is supported by net cash and trail receivables.
Earnings risk is to the upside and the broker retains an Outperform rating. Target is raised to $3.18 from $3.06.
Sector: Banks.
Target price is $3.18.Current Price is $2.95. Difference: $0.23 – (brackets indicate current price is over target). If AFG meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
