Suncorp Group’s first half results have driven UBS to increase earnings per share forecasts 11% and 6% in FY22 and FY23, noting despite mixed industry trends the company has a number of controls at its disposal to support earnings and return on equity into FY23.
The broker continues to see more value in the divestment of the Bank segment, but management is pursuing cost reductions in FY23 to improve profitability. Insurance continues to show momentum, and UBS expects the segment can deliver at the top end of guidance.
The Buy rating is retained and the target price increases to $14.00 from $13.85.
Sector: Insurance.
Target price is $14.00.Current Price is $12.06. Difference: $1.94 – (brackets indicate current price is over target). If SUN meets the UBS target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
