Equity Analysis /
Australia

AU : Suncorp Group - Flood events broadly contained

    Richard Coles
    Richard Coles

    Financials - Equity Research

    CGS-CIMB
    25 March 2022
    Published by

    We make minor downgrades to SUN FY22F EPS of ~2% due to the slightly higher hazard budget, but we make no changes to future year earnings. Our target price falls marginally to A$13.14 (previously A$13.19). Maintain ADD recommendation. While FY22 has been tough for SUN, we see upside on solid current underlying business momentum and SUN’s cost-out plan into FY23. Trading on ~12.5x FY23F PE and a ~6% dividend yield, we see SUN as reasonable value at current levels. We make minor downgrades to SUN FY22F EPS of ~2% due to the slightly higher hazard budget, but we make no changes to future year earnings. Our target price falls marginally to A$13.14 (previously A$13.19).