Suncorp-Metway (SUN) Stock Recommendation

Suncorp-Metway (SUN) has a Neutral 2 recommendation and a share price target of $22 from investment bank and stock analyst UBS. UBS has calculated their valuation for SUN via a sum of parts approach including an EVA/DCF methodology for the general insurance business which supports their rating and price target. They estimate that the Suncorp-Metway stock is trading at a 13.4x FY09E PE. The broker believes that the 5.7 percent fall in the stock today was due to the takeover premium erosion given the signing of the MIA. ACCC approval is the key hurdle for transaction completion. The deal terms are unchanged at 0.2618 SUN shares + $1.80 cash for each PMN share, valuing PMN at $7.41 on today's close.

Suncorp-Metway Limited is listed on the Australian Stock Exchange (ASX) under stock code SUN. You can view their investor website here. SUN was listed on the ASX on 7 July, 1988. Suncorp-Metway is primarily involved in the provision of banking, insurance, superannuation and funds management products and services to the retail, corporate and commercial sectors. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade SUN. Check your charts and good luck with your share trading!