Judo Capital shares (ASX:JDO) have been given a boost today, with bullish coverage from Goldman Sachs boosting sentiment.
Goldman Sachs initiated coverage of Judo Capital with a ‘Buy’ rating and a price target of A$2.08, citing the company’s strong lending growth and successful funding restructuring. UBS reiterated its ‘Buy’ rating with a price target of A$2.20 on October 1, 2025, reinforcing confidence in Judo’s performance. Citi upgraded Judo Capital to a ‘Buy’ rating on September 9, 2025, increasing the price target to A$2.00, which also reflected positive sentiment towards Judo’s lending expansion.
Judo Capital reported strong FY25 financial performance, including a 14% increase in profit before tax, reaching £125.6 million. The company achieved a net interest margin (NIM) of 2.93% for the full year, with a second-half NIM of 3.04%. The cost-to-income ratio improved to 52.4%, and deposits exceeded $10 billion. The company’s strategic focus on regional and agribusiness lending has led to a 16% growth in its lending book, reaching $12.5 billion by June 2025.
Chris Bayliss, CEO of Judo Capital, expressed confidence in the company’s ability to compete with major banks, emphasizing the strength and sustainability of Judo’s business model. “We’re seeing really good growth in our lending book,” Bayliss stated, “and our focus on regional areas is really paying off.”
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Other financial analysts have also provided favourable ratings and price targets for Judo Capital. Morgan Stanley reiterated a ‘Buy’ rating with a price target of A$2.15 in August. Jefferies also maintained a ‘Buy’ rating with a price target of A$2.16, J.P. Morgan reiterated a ‘Buy’ rating with a price target of A$2.20, and Jarden reiterated a ‘Buy’ rating with a price target of A$2.40 all coming in the same month.
Despite the positive sentiment, some analysts advise caution regarding Judo Capital’s ambitious growth targets. It has been suggested that while Judo can potentially double its loan book to around $20 billion by 2028, converting this growth into profits may be challenging. The company’s cost/income ratio target of approximately 30% is considered ambitious compared to major banks’ ratios of around 35%.
Judo Capital is currently enjoying a wave of bullish sentiment driven by strong financial results and positive analyst coverage. While ambitious targets present potential challenges, the company’s strategic focus and lending growth position it favourably in the market. Despite the support from the street, shares continue to trade lower YTD, down 8.38% since the turn of the year.
