Ann: LFG Interim Distribution, page-16

LIBERTY FINANCIAL GROUP LIMITED ((LFG)) Upgrade to Outperform from Neutral by Macquarie .B/H/S: 2/1/0
Macquarie's investment thesis is based on Liberty Financial’s ability to deliver a more defensive result in the elevated rate environment, with structurally lower credit growth aspirations.
With a lower churn rate, the broker sees Liberty as well placed to manage margins, and with a lower exposure to the non-prime mortgage segment, sees Liberty as a lower risk exposure and higher quality book than Pepper Money.
With a more defensive bent than Pepper Money in the non-bank lender segment, Liberty is Macquarie's preferred exposure in the sector, given stronger defensive quality and stability in pricing strategy, which should engender improved customer loyalty in the longer term.
Upgrade to Outperform. Target unchanged at $4.25.