Macquarie continues to envisage earnings headwinds for Suncorp and a risk to consensus estimates. The broker believes the company’s cash return targets are becoming increasingly unachievable. Some change to FY20 guidance is expected at the August result.
The broker believes it will to be difficult for the stock to outperform until the downgrade cycle stops. Underperform rating maintained. Target is $12.80.
Target price is $12.80.Current Price is $13.46. Difference: ($0.66) – (brackets indicate current price is over target). If SUN meets the Macquarie target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).