After FY21 results Morgans leaves EPS forecasts largely unchanged, with slightly reduced earnings forecasts offset by incorporation of the $250m buyback. The result was considered a mixed bag.
The analyst highlights a stronger-than-expected capital returns, with the second half dividend of 40cps being 5cps above consensus, while a 8cps special dividend was declared.
While the broker sees this as a strong result and remains optimistic on earnings improvement over the next few years, shares are trading in-line with valuation. There’s considered better value elsewhere in the sector. The Hold rating is unchanged and the target rises to $12.85 from $11.66.
Sector: Insurance.
Target price is $12.85.Current Price is $12.79. Difference: $0.06 – (brackets indicate current price is over target). If SUN meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
