Sales growth was recorded across all divisions over the first 16 weeks of FY18. This is broadly in line with UBS forecasts for the first half, with automotive business a touch stronger and sports a touch softer.
The broker is pleased that the Amart conversions are on track and Rays is generating strong traffic growth. UBS believes the market is taking an overly pessimistic view on the medium-term outlook for the stock.
Buy rating retained. Target is $9.50.
Target price is $9.50.Current Price is $8.07. Difference: $1.43 – (brackets indicate current price is over target). If SUL meets the UBS target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).