Challenger Ltd
CGF: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$6.40 | Nzs | Lgdgftpp |
Challenger Transfer of Analyst Coverage
We have transferred analyst coverage of Challenger. We reaffirm our current forecasts, DCF-based fair value estimate of AUD 8.50 per share, and no-moat and high uncertainty ratings. The stock is currently trading at a 9% premium to our current fair value. While we remain optimistic on retail annuity sales growth, we are perhaps slightly more cautious than the market on long-term margins. We forecast a five-year CAGR in EPS of 7% to fiscal 2021.