In the good books
Challenger (CGF) was upgraded to Buy from Neutral by Citi. B/H/S – 3/3/2. The changes mooted in the 2018 federal budget to the age pension suggest test requirements for retirement products are more favourable for the product providers than previously proposed. The rules change the way in which lifetime annuities interact with the age pension by altering the amount to be included in means test calculations. Aged care changes may also be favourable for the company's CarePlus product. Partly offsetting this positive news for the company, Citi suggests Japan may not be as strong a growth option as previously thought. Target is raised to $13.60 from $11.20.