Ann: Investor Presentation - Market Update, page-8

BROKERDATERATINGRECOMMENDATION

Morgans

03/05/2021

3

Hold

• TARGET PRICE

  $33.45

• % TO REACH TARGET

  19.59%

• COMMENTARY

  In a trading update, Credit Corp reaffirmed FY21 earnings guidance and purchase debt ledger (PDL) investment. Net lending guidance was increased, with volumes close to pre-covid levels.

  Debt sale volumes remain subdued though there are early signs of increasing supply to come, notes Morgans. The Hold rating is maintained until the broker attains greater confidence in the near-term PDL investment levels.

  The analyst is positive on the long-term outlook given a strong balance sheet, a solid market position in both Australia/US and a material growth opportunity in the US. The target is decreased to $33.45 from $34.05.

  FORECAST
  Morgans forecasts a full year FY21 dividend of 73.00 cents and EPS of 133.00 cents.
  Morgans forecasts a full year FY22 dividend of 75.00 cents and EPS of 142.00 cents.

This is a true inflation hedge stock. I'm in today.