Judo Capital's Downgrade Causes Concerns at MS

Dow Jones

Jun 26

0209 GMT - Judo Capital's guidance downgrade raises concerns at Morgan Stanley about the Australian business lender's ability to meet its scale targets while managing risk. Despite Judo's assurances, the investment bank's analysts suspect that efforts to grow the loan book without sacrificing margins have increased risk by more than its loss-rate target implies. They say they're surprised at how quickly loan losses have grown, pointing out that operating conditions started to deteriorate in March and that other banks' credit quality remains sound. They wonder about the effectiveness of its underwriting and early risk detection. MS has a last-published overweight rating on the stock and a target price of 1.85 Australian dollars. Shares are down 14% at A$0.9025. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

June 25, 2026 22:09 ET (02:09 GMT)

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Despite Judo's assurances, the investment bank's analysts suspect that efforts to grow the loan book without sacrificing margins have increased risk by more than its loss-rate target implies. They say they're surprised at how quickly loan losses have grown, pointing out that operating conditions started to deteriorate in March and that other banks' credit quality remains sound. They wonder about the effectiveness of its underwriting and early risk detection. MS has a last-published overweight rating on the stock and a target price of 1.85 Australian dollars. Shares are down 14% at A$0.9025. (stuart.condie@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  June 25, 2026 22:09 ET (02:09 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Judo Capital's Downgrade Causes Concerns at MS</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nJudo Capital's Downgrade Causes Concerns at MS\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2026-06-26 10:09</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0209 GMT - Judo Capital's guidance downgrade raises concerns at Morgan Stanley about the Australian business lender's ability to meet its scale targets while managing risk. Despite Judo's assurances, the investment bank's analysts suspect that efforts to grow the loan book without sacrificing margins have increased risk by more than its loss-rate target implies. They say they're surprised at how quickly loan losses have grown, pointing out that operating conditions started to deteriorate in March and that other banks' credit quality remains sound. They wonder about the effectiveness of its underwriting and early risk detection. MS has a last-published overweight rating on the stock and a target price of 1.85 Australian dollars. Shares are down 14% at A$0.9025. (stuart.condie@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  June 25, 2026 22:09 ET (02:09 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7135","symbol_name":"综合性银行","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2646881338","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2646881338","pubTimestamp":1782439740,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0209 GMT - Judo Capital's guidance downgrade raises concerns at Morgan Stanley about the Australian business lender's ability to meet its scale targets while managing risk. Despite Judo's assurances, the investment bank's analysts suspect that efforts to grow the loan book without sacrificing margins have increased risk by more than its loss-rate target implies. They say they're surprised at how quickly loan losses have grown, pointing out that operating conditions started to deteriorate in March and that other banks' credit quality remains sound. They wonder about the effectiveness of its underwriting and early risk detection. MS has a last-published overweight rating on the stock and a target price of 1.85 Australian dollars. Shares are down 14% at A$0.9025.  Dow Jones NewswiresJune 25, 2026 22:09 ET Copyright  2026 Dow Jones & Company, Inc.","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7135":"综合性银行","JDO.AU":"Judo Capital Holdings Ltd"},"translate_title":"Judo Capital评级下调引发MS担忧","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"JDO.AU":0.9},"content_text":"0209 GMT - Judo Capital's guidance downgrade raises concerns at Morgan Stanley about the Australian business lender's ability to meet its scale targets while managing risk. Despite Judo's assurances, the investment bank's analysts suspect that efforts to grow the loan book without sacrificing margins have increased risk by more than its loss-rate target implies. They say they're surprised at how quickly loan losses have grown, pointing out that operating conditions started to deteriorate in March and that other banks' credit quality remains sound. They wonder about the effectiveness of its underwriting and early risk detection. MS has a last-published overweight rating on the stock and a target price of 1.85 Australian dollars. Shares are down 14% at A$0.9025. (stuart.condie@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  June 25, 2026 22:09 ET (02:09 GMT)\n\n\n  Copyright (c) 2026 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":true,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":true,"need_login_tip":false,"code":"91000000","status":"200"}}}