SUN - Macquarie rates as Underperform
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Should the company decide to sell its Australian life insurance business Macquarie anticipates proceeds between $1.3-1.4bn. Selling this business could allow management to focus on the core strategy and provide flexibility for additional capital to be returned to shareholders, the broker suggests.
Macquarie remains cautious regarding the stock given low premium growth as well as the underlying margin outlook. Underperform maintained. Target is $13.25.
Sector: Insurance.Target price is $13.25.Current Price is $13.91. Difference: ($0.66) - (brackets indicate current price is over target). If SUN meets the Macquarie target it will return approximately -5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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