After holding a general insurance forum, Suncorp Group arrived at unchanged overall key group targets for FY23. While the margin targets appear sound to Morgans, earnings upside seems limited in FY22.
Also, the group noted the bulk of any planned underlying insurance trading ratio (UITR) uplift will occur in FY23. The broker lowers the rating to Hold from Add after recent share price strength and the target falls to $11.39 from $11.80.
Management confirmed that business momentum has broadly continued as expected in the third quarter.
Sector: Insurance.
Target price is $11.39.Current Price is $10.98. Difference: $0.41 – (brackets indicate current price is over target). If SUN meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
