ASX – UBS rates the stock as Sell

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UBS observes strong equity markets and volatility in interest rates support stronger second half activity. Average daily cash equity turnover is now up 8.5% while futures volumes are running 14% higher.

Nevertheless, the broker envisages earnings growth will slow to 2.1% in FY20 and 4.7% in FY21. ASX offloaded its stake in IRESS ((IRE)) in February and UBS envisages scope for capital management at the results in August.

Sell rating reiterated, as the dividend yield has compressed to 3%. Target is raised to $62.60 from $58.10.

Sector: Diversified Financials.

Target price is $62.60.Current Price is $77.54. Difference: ($14.94) – (brackets indicate current price is over target). If ASX meets the UBS target it will return approximately -24% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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