SUL – Deutsche Bank rates the stock as Hold

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First half results revealed solid margins and steady sales and Deutsche Bank observes the recently-acquired Macpac business produced a good result that reflects significant investment undertaken in the supply chain over the last 2-3 years.

BCF remains the main area of concern. While the stock is trading at a discount to the broker’s $10.20 target, with a strong yield and valuation support, given the volatile retail conditions and management changes Deutsche Bank envisages near-term risks and sticks with a Hold rating.

Sector: Retailing.

Target price is $10.20.Current Price is $7.84. Difference: $2.36 – (brackets indicate current price is over target). If SUL meets the Deutsche Bank target it will return approximately 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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