Challenger Financial Services: Investor Day 2023

About the author:

Author name:

By Richard Coles

Job title:

Senior Analyst

Date posted:

31 May 2023, 7:00 AM

Sectors Covered:

Insurance, Diversified Financials

• Challenger Financial Services (ASX:CGF) has hosted an investor day in Sydney.
• Overall FY23 NPBT guidance has been marginally lifted. We thought the day highlighted a range of business opportunities for CGF, arguably the most interesting being the potential to help Superannuation Funds manage both Defined Benefit Portfolio risks, and also their Lifetime Solution strategies.
• We highlight the key points we took away from each presentation below.
• We make nominal changes to our CGF FY23 EPS forecasts, but lift FY24/FY25 EPS by 1%-3% on lower retail annuity run-off rate forecasts. Our PT is set (login to view).
• We feel CGF has reasonably solid business momentum overall, with the benefits of recent interest rates rises still to fully flow through earnings. We maintain our ADD recommendation with CGF trading on an undemanding 12x FY24 PE multiple.

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Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.