Suncorp-Metway (SUN) Shares Recommendation

Suncorp-Metway (SUN) has a Neutral 2 shares recommendation and a share price target of $22 from stock analyst, UBS. Their share price target is based on SOTP and EVA/DCF. UBS estimates that SUN is trading on a 12.8x FY08 PE and an 8 percent discount to GI and a 4 percent discount to the major banks. UBS notes that, IAG's CGU/NZI acquisition in early 2003 provides a good comparison to the proposed SUN/PMN merger. They find that anticipated PMN synergies are in line with those estimated for CGU/NZI, which turned out to be accurate in size and timing. "While IAG purchased CGU/NZI at a lower P/NTA multiple (2.2x vs. 3.8x), underwriting profitability has improved. SUN's implementation costs are also relatively high (1.76x vs. 0.9x), partly due to additional IT spend, which remains an uncertainty."

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 provides banking, insurance, superannuation and funds management products and services to the retail, corporate and commercial sectors. Read a previous stock recommendation for Suncorp-Metway (SUN). Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!