Credit Suisse observes corporate actions were weak in the second half of FY19. Margin on listings in the current half year is expected to be significantly higher, as particularly low-margin listings are cycled.
A narrowing BBSW spread and reductions to the cash rate are creating a headwind, the broker adds. Credit Suisse remains supportive of the incremental growth opportunities the company is pursuing but considers the benefits long dated.
Underperform rating and $60 target maintained.
Sector: Diversified Financials.
Target price is $60.00.Current Price is $86.64. Difference: ($26.64) – (brackets indicate current price is over target). If ASX meets the Credit Suisse target it will return approximately -44% (excluding dividends, fees and charges – negative figures indicate an expected loss).