Analysts at Jefferies and Morningstar see earnings growth for Australia’s Credit Corp Group throughout FY24, despite the company reporting a fall in profit for FY23.

The company’s loan book has had a record start for FY24, which Jefferies expects will help earnings further.

Morningstar expects the company’s EBITDA to grow 22% per year over the next five years and sees upside to revenue over the long term.

Brokerages have lowered their price target and fair value estimates due to the fallen FY23 profit.

Jefferies cut the target to A$23.23 from A$23.54, and Morningstar cut it to A$22.50 from A$24.

Jefferies also mentioned the possibility of revised FY24 purchasing guidance before the 1Q24 AGM by CCP.

According to Refinitiv data, four of seven analysts rate the stock as “buy” or higher, two rate it as “hold,” and one rates it as “sell.” The median price target is A$23.23.

The stock has risen 9.7% this year, as of the last close.