What we have now is a company that has a great business...

What we have now is a company that has a great business opportunity – to improve the access to finance for the 2.8 million small businesses in Australia and New Zealand, and to use “fintech” and its credit assessment skills to lend profitably. For investors, this business opportunity is now priced much more favourably than it had been. The price “haircut” applied by the stock market has been brutal on float subscribers, but could present a bargain for new investors. Even after the downgrade, analysts hold bullish price targets for Prospa – Macquarie sees $3, while UBS posts $3.10 – but bear in mind that these firms were the joint lead-managers for Prospa’s float.