Potential share price rerating a positive for AEON Credit

RHB Investment Bank has upgraded AEON to a “buy” from “neutral”, with an unchanged target price of RM16.20.

PETALING JAYA: Consumer finance company Aeon Credit Service Bhd’s recent share price weakness is an attractive entry point for investors to capitalise on, given the healthy improvement in underlying operations, brokerage firms say.

After the recent profit-taking following AEON’s receipt of a digital banking licence, RHB Investment Bank said the stock was currently trading at 1.54 times price-to-book value for the financial year ending Feb 28, 2023 (FY23), which is around a minus 0.5 standard deviation from its five-year mean.