Despite a mixed first quarter for ASX, Credit Suisse maintains that it is a high quality business. Low near-term growth outlooks may present a cyclical opportunity for long-term investors.
The quarter saw better-than-expected levels of capital raising, with $9.5bn in initial public offerings making it the strongest September quarter on record. ASX24 Derivatives showed little sign of recovery and remained weak throughout the quarter.
The Neutral rating and target price of $78.00 are retained.
Sector: Diversified Financials.
Target price is $78.00.Current Price is $80.48. Difference: ($2.48) – (brackets indicate current price is over target). If ASX meets the Credit Suisse target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
