analyst research, page-3

Management's guidance for ’08 was $24 m. It has subsequently been downgraded it to $19 m and $17 m or between 20 and 30%.
Targets for the year have been subsequently downgraded by
JP Morgan 40% ($7.45)
Linwar Securities 32% ($8)
ABN Amro 47% ($5.89)
Macquarie 45% ($7.15)

Average downgrade of the price target is 40 percent.

Average target price is $7.12
Current price for CCP is $5.72

Comment
CCP’s guidance downgrades future profits by 20-30%
The analysts have it down by 40%
Why?
It could be two things – either the analysts are overly negative or the company is overly optimistic.
I think probably a bit a both. I’d therefore reduce targets by 35% and look at a price of $7.50 reflecting fair value for ’08.
In any case the average target price of $7.12 indicates that the stock at $5.72 is some what oversold and would give investors a return of 24% (not including the 3.6% divi and the franking credits.

I have tried to include as many reports as possible here so you can make up your own minds. If you have any other reports could you post them here. Thanx

J P Morgan – ’08 Target = $7.45 (from $12; down 40%)

http://www.creditcorp.com.au/admin/upload/8099EAD9-E9BE-4C14-8AED-4B84200CC69B.pdf

Linwar Securities
’08 Target = $8 (was $11.80; down 32%)
Intrinsic value= $8.02

http://www.creditcorp.com.au/admin/upload/73148600-3C80-4667-95A1-FB255813F0BB.pdf

ABN Amro
Target price – $5.89 (was $11.28; down 47%)

Macquarie
(’08) Target = $7.15 ($12.92; down 45%)







Original announcement
FY08 NPAT guidance down from $24 million to between $17 and $19 million.

Credit Corp’s CEO, Mr Geoff Lucas stated: “We believe it is essential to make timely investments in the Company’s ongoing operations to meet the requirements of future activities as we see significant opportunity for substantial increases in supply of consumer debt into our market. It is, however, disappointing not to have maintained our FY08 earnings growth targets whilst undertaking such a rate of expansion.”
Credit Corp is confident in its long term strategy to deliver NPAT growth in the 2009 financial year.

http://sa.iguana2.com/cache/1e7962901c549ce6692b9fee8940c40f/ASX-CCP-480117.pdf