Bull Expects Judo Capital to be Tested in FY27

Dow Jones
Aug 05

0250 GMT - Judo Capital's bull at Jefferies sees the Australian business lender's path toward self-funding growth being tested in its current fiscal year. Analyst Andrew Lyons expects Judo's profit for its most recent fiscal year, which ended June 30, to be at the bottom of the ASX-listed company's guidance range. However,Lyons tells clients in a note that asset-quality concerns, worsening deposit conditions, and the sustainability of recent efficiency gains are set to make fiscal 2027 a challenging period. He expects Judo to report a 20 basis-point expansion in its fiscal 2026 net interest margin, but forecasts a 1bp contraction in fiscal 2027. Jefferies keeps a buy rating on the stock and raises its target price 3.0% to 1.69 Australian dollars. Shares are up 2.2% at A$1.0475.

 

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