That makes for a positive change. Here's the headline extract from the most recent report I've read.
"Credit Corp (ASX code: CCP) has announced it plans to exit the small
amount credit contract lending segment from March. While this segment
represents only 5% of Credit Corp’s receivables it is an important source
of customer acquisition and helped justify more than $9 million in
marketing spend in FY15. We also note Collection House’s reference to a
recent increase in pricing competition. We retain our HOLD
recommendation on Credit Corp in the knowledge that much of its
forecast FY16 profit growth is locked in thanks to the strong growth in its
consumer loan book and healthy debt purchasing over the past nine
months. However we have reduced outer year forecasts and therefore
price target as Credit Corp must retool its loan product offering and is
likely to buy less ledgers." They have a hold on it and a reduced 12mt PT from $11.86 to $10.23. On a positive note, they assume that CCP's withdrawal from SACC lending will enable CCP to retain Westpac as its principal lender.
CCP Price at posting:
$9.29 Sentiment: None Disclosure: Not Held
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