MENU

FlexiGroup Limited share price falls on broker downgrade

The FlexiGroup Limited (ASX: FXL) share price has had a disappointing start to the week.

In afternoon trade the shares of the provider of lease and rental financing services are down 6% to $1.59.

With no news out of the company, today’s decline is likely to be attributable to a broker downgrade from Credit Suisse.

According to a research note out of the investment bank, its analysts have downgraded FlexiGroup’s shares from an outperform rating to a neutral rating with a $1.85 price target.

The previous price target on its shares was significantly higher at $2.70.

While its analysts do think FlexiGroup’s shares look cheap, they are concerned about the performance of its Certegy Ezi-Pay business and the potential for it to offset growth from its other businesses.

Last month the company revised its full-year cash profit guidance from between $90 million and $97 million to between $90 million and $93 million due to a weaker-than-expected performance from the Certegy business.

We've just released our #1 dividend pick for 2017. And the winner is...

With its shares up 155% in just the last five years, this 'under the radar' consumer favourite is both a hot growth stock AND our expert's #1 dividend pick for 2017. Now we're pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is click the link below!

Simply click here to receive your copy of our brand-new FREE report, "The Motley Fool's Top Dividend Stock for 2017."

Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.