ASX financial stocks have performed well in 2025. The S&P/ASX 200 Financials Index (ASX: XFJ) has lifted more than 11% year to date.
Resimac Group Ltd (ASX: RMC) has beaten that benchmark so far this year, rising 12.24%.
Resimac Group is a non-bank lending company. It is a residential mortgage lender and multi-channel distribution business specialising in Prime and Specialist lending.
The group operates in targeted market segments and asset classes in Australia and New Zealand.
Bell Potter recently upgraded its guidance and price target on this ASX financials stock.
Let's see what was behind the upgrade.
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Important developments in 2025
Resimac underwent a CEO change in April, a revised strategy, as well as the acquisition of the $1.5bn Westpac Auto portfolio.
According to Bell Potter, RMC has a small but strong position in the mortgage market and a position in Asset finance, with both segments having scope to grow profitably.
The company has a renewed team and strategy and a revised growth agenda. Its priorities are focused on investing in the broker and customer experience, leveraging automation, enhancing the core product suite, and reinforcing its security and governance foundations.
The company also released the following FY 25 results in August:
- AUM increased 14% to $15.9 billion
- Operating profit before impairment expense and tax of $78.6 million, up 13%
- Statutory NPAT of $34.6 million, down 1%
Speaking on the results, Bell Potter said:
The results were better than expected from a larger book generating more net interest income and impairments below expectations (although rising vs pcp). Normalised NPAT was down 8% to $39.7m but ahead of our expectation of $29.7m.
Price target upside
Following the FY25 results, broker Bell Potter upgraded its guidance on this ASX financials stock.
The broker increased its forecast by 52.5% for FY26 and 46.0% for FY27, off a relatively low base.
Our NPV gives a value for the business of $604m or $1.53/sh. This is a considerable increase on our previous $0.98/sh but driven by the turn around in profitability and the improved outlook. We round to $1.50 to set a target price and maintain our BUY recommendation.
Based on the price target of $1.50 and yesterday's closing price of $1.10, the broker anticipates 36.36% upside in this ASX financials stock.
The stock also currently has a dividend yield above 6%.
