Suncorp-Metway (SUN) Shares Recommendation

Suncorp-Metway (SUN) have a Neutral 2 Shares recommendation and a $22 share price target from stock analyst UBS. The share price target for SUN is based on a sum of the parts methodology and UBS estimate that SUN is trading on a 12.7x FY08E PE. PMN have released the merger scheme booklet as required under a scheme of arrangement. In the booklet 1) the PMN board reiterated its support for the merger, 2) the independent expert's report supports the deal, valuing PMN at $6.46-7.33 (including a control premium), and 3) it is confirmed that S&P have indicated a merged entity A+ rating (vs. SUN's current A rating). The booklet also revealed that 1) SUN still expects EPS accretion by year 2, 2) the cash component of the bid ($1.87bn) will be funded by entitlements ($1.15bn), debt ($450mn) and excess capital ($270mn) – the latter will also be used to pay out PMN RPS holders, 3) lowered estimated integration costs by $40mn to $355mn on lower IT spend, and 4) SUN reiterated its $225mn pre-tax synergy estimate.

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. John Mulcahy is the CEO for Suncorp-Metway and John Story the Chairman. 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!