Share to buy – Challenger Financial (CGF)
Posted on August 31, 2015
Challenger’s recent results were strong, coming in ahead of expectations.
We believe the stock to be good value, given a strong organic growth profile in an otherwise fully valued sector.
Furthermore, the outlook for the Life Division is attractive, while the funds management operations continue to expand.
It appears that a solid base has been set for earnings growth in FY16.
On the technical front, Challenger looks poised to break higher out of the recent range, bound by resistance around $7.40.
The EMAs are in a bullish configuration, momentum is building, volumes have picked up and the RSI is not yet in overbought territory.