Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.
Despite seeing a broadly difficult reporting season for stocks in the sector, the broker believes Challenger is one of the best positioned of the large cap stocks to produce solid/stable results.
Morgans makes small EPS estimates downgrades on more conservative life business margin assumptions given recent interest rate cuts.
The Hold rating is unchanged and the target price is $6.80.
Sector: Diversified Financials.
Target price is $6.80.Current Price is $6.93. Difference: ($0.13) – (brackets indicate current price is over target). If CGF meets the Morgans target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
