First half results were in line with guidance and UBS notes cash flow was strong. Despite the $417m net cash balance, the interim dividend disappointed the broker, with commentary suggesting further capital management is not imminent.
Still, the valuation remains attractive and UBS retains a Buy rating. Target is raised to $12.80 from $12.60.
Sector: Retailing.
Target price is $12.80.Current Price is $11.81. Difference: $0.99 – (brackets indicate current price is over target). If SUL meets the UBS target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).