CVW – Macquarie rates the stock as Neutral

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A trading update from ClearView suggested an FY19 profit -7.6% below the broker’s forecast, due to the adverse impact of a change in income protection claims assumptions. Changes have been made by management in all of expense, claims, lapse and discount rate assumptions to take into account recent experience.

With operating conditions remaining challenging in the sector, the broker retains Neutral. Target falls to 69c from 88c. Management has flagged a buyback to replace the final dividend.

Sector: Diversified Financials.

Target price is $0.69.Current Price is $0.67. Difference: $0.02 – (brackets indicate current price is over target). If CVW meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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