Morgans initiates coverage on MoneyMe with an Add rating and $1.79 target. The broker assesses the addressable market is substantial at around $14bn and considers the company's businesses model attractive, driven by strong loan unit economics.

MoneyMe is a consumer credit business that utilises its digital and technology platform to offer loan products. The business generates a 42% net contribution margin per loan and delivered growth of 82% in FY19.

After becoming profitable in FY20, Morgans forecasts profit growth of more than 100% in FY21 and FY22.

Sector: Diversified Financials.

Target price is $1.79.Current Price is $1.52. Difference: $0.27 - (brackets indicate current price is over target). If MME meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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