First half earnings were in line with UBS estimates. Headwinds are expected to persist and further asset mix offsets are considered unlikely, given a more constrained capital position.
The broker envisages ongoing margin erosion that will temper earnings leverage. Neutral maintained. Target reduced to $12.90 from $13.60.
Sector: Diversified Financials.
Target price is $12.90.Current Price is $12.82. Difference: $0.08 – (brackets indicate current price is over target). If CGF meets the UBS target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).