Judo Capital Holdings

(AI video summary)

This video was created on 10 September 2025 for IG audiences by ausbiz.

ASX code: JDO

Judo Capital wins Citi upgrade

Judo Capital was among the top performers on the Australia 200 (ASX 200) after Citi upgraded the lender from ‘neutral’ to ‘buy’. The broker cited resilient credit growth, stable net interest margins (NIMs) and reduced expectations for interest rate cuts.

Citi lifted its target price to $2.00 from $1.85, noting the steepening United States (US) yield curve and narrowing rate differentials with Australia as positive for banks. A cost‑led earnings beat, with operating expenses 6% below forecasts, also added support. Judo reaffirmed its financial year (FY) 2026 guidance, targeting gross lending between $14.2 billion and $17.7 billion.

Investment outlook

Analysts described Judo as well positioned, with scope for market share gains in the small and medium‑sized enterprise (SME) sector. Current share of around 1.5% could rise to 3%, which would significantly lift earnings per share (EPS) if margins hold near 3%. Falling interest rates were also seen as a potential driver of lending volumes.

While the stock often looks inexpensive compared with major banks, higher funding costs and less predictable earnings remain challenges. Recent price support and a pullback, however, were noted as making the shares attractive in the short term.