SOLVAR LIMITED (SVR)
Share Price Analysis and Chart

19/02/2026

2

Downgrade to Accumulate from Buy

$2.00

26.58%

Morgans downgrades Solvar to Accumulate from Buy with a higher target of $2 from $1.85 post interim results.

The results came in above the broker's expectations with normalised net proft after growth of $20m.  Net interest income of $74.3m missed, and net interest margin contracted to 16.4%, reflecting mix changes and NZ roll-off, while bad debts improved to 2.9%.

The Australian loan book grew, supported by a record half from AFS and continued traction from Bennji, while NZ receivables reduced to around $50m.

Management reiterated FY26 net profit after guidance of around $36m implying a 2H skew and improving book growth momentum into 2H26.

Morgans lifts net profit forecats for FY26-FY28 by 5%/1%1%, respectively.

FORECAST
Morgans forecasts a full year FY26 dividend of 13.00 cents and EPS of 18.00 cents.
Morgans forecasts a full year FY27 dividend of 13.00 cents and EPS of 20.00 cents.

23/02/2026

1

Buy

$2.00

26.58%

Canaccord Genuity highlights Solvar continues to focus on capital management with1H26 closing gross loan book of $897m down -4% y/y, net interest income of $74.3m, down -9% y/y, and normalised NPAT of $20.0m, up 6% y/y.

Profitability benefited from an NZ$8m sale of the written-off loan book. An interim dividend of 6cps and a 2.5cps special dividend were declared, taking the last 12-month dividends to 19cps, and the buyback saw 11.5% of shares repurchased in recent years.

Management reiterated FY26 guidance for normalised NPAT of $36m, and the broker makes minor forecast revisions to reflect a lower closing book and higher employee costs, positioning for measured earnings growth into FY27.

Canaccord Genuity retains a Buy rating and $2.00 target price.

FORECAST
Canaccord Genuity forecasts a full year FY26 dividend of 19.00 cents and EPS of 19.00 cents.
Canaccord Genuity forecasts a full year FY27 dividend of 14.00 cents and EPS of 19.00 cents.