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.

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