Credit Corp Group Limited (ASX:CCP) rose as much as 9.3% by midday, after the Australian debt collection company reaffirmed its upbeat FY23 guidance. The company also confirmed the finalised a major acquisition.
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Sydney-headquartered Credit Corp operates in Australia, New Zealand, and the U.S. in the distressed debt market. Its business encompasses debt purchasing and collection, as well as consumer lending.
At its AGM, Credit Corp confirmed its FY23 profit outlook of AU$90 million to AU$97 million. The company also reiterated its lending target of AU$50 million to AU$60 million. Moreover, Credit Corp raised its ledger investment outlook to a range of AU$240 million to $260 million.
Aside from the upbeat outlook, the company has also recently completed the acquisition of Collection House, as it continues to expand and diversify its business.
Credit Corp share price forecast
According to TipRanks’ analyst rating consensus, Credit Corp stock is a Strong Buy based on three Buys and one Hold. The average Credit Corp share price forecast of AU$26.25 indicates over 43% upside potential.
Credit Corp stock is receiving positive mentions on financial blogs. TipRanks data shows that financial blogger opinions are 83% Bullish on Credit Corp, compared to a sector average of 70%.
Closing remarks
Credit Corp delivered strong results for FY22. The confirmation of FY23 guidance indicates that the company is expecting another successful year.
