A media report last week suggested the Australian Government developing policy which is highly supportive of retirement-income protection products and provides a major new revenue opportunity for CGF. Following this report and given the likely introduction of DLAs and other products later next year we have upgraded our valuation to better account for the growth potential of the three developments. We have upgraded our Sum-of-Parts valuation target Life Company PE from 12.0x to 14.0x. Following which, our revised Price Target is $10.15 per share (previously $8.90 per share).
Challenger is one of the highest quality businesses on the ASX in my opinion, and the multiple tailwinds assisting its growth should continue for years to come. Already more than doubled my money, no signs of a sell in sight yet though.