Judo Capital's 1H unaudited 1H results and near-term outlook were ahead of consensus expectations, and Morgans makes material upgrades to forecasts, resulting in a $1.50 target, up from $1.39. The Add rating is maintained.
Pre-provision operating profit (PPOP) grew by 8% on the prior half, largely due to a beat on costs, explains the analyst, while gross loans grew by 9%.
Management provided 1H profit before tax (PBT) guidance of between $40-45m, which implies an around 35% upgrade to the broker's FY24 profit forecast.
First half results are due on February 20.
Sector: Banks.
Target price is $1.50.Current Price is $1.09. Difference: $0.41 - (brackets indicate current price is over target). If JDO meets the Morgans target it will return approximately 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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