BUZZ-Citi cuts PT on Australia's lender ANZ Group as earnings disappoint

Reuters05-08

** Brokerage Citi cuts price target on ANZ Group to A$24.50 from A$26.00; maintains "sell" rating on stock

** Australia's no. 4 lender posted a 7% decline in half-year cash profit at A$3.55 bln ($2.35 bln), slightly above a Visible Alpha consensus estimate, compiled by UBS, of A$3.54 bln

** Brokerage says ANZ's strategy to continue expanding in loan and deposit businesses despite falling profitability is hurting earnings

** Management has shown no sign of changing its strategy which is disenfranchising many investors - Citi

** Adds that co's weakness of Australia-geography revenue is starting to grow into a "serious investor concern"

** Brokerage downgrades its cash earnings forecast by 2.5%, 5.6% and 7.9% for FY24, FY25 and FY26, respectively

** Stock has risen 11.1% this year, as of last close

(Reporting by Poonam Behura in Bengaluru)

((Poonam.Behura@thomsonreuters.com;))

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