AUB – Credit Suisse rates the stock as Outperform

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AUB Group’s acquisition of 360 Underwriting Solutions is another step in addressing the shortcomings of AUB’s underwriting division, comments Credit Suisse.

Even as the earnings impact of the acquisition is minimal, the broker is more interested in the opportunity for the group to monetise more agency gross written premium within its broker network.

Outperform retained. Target rises to $18.40 from $18.25.

Sector: Insurance.

Target price is $18.40.Current Price is $17.17. Difference: $1.23 – (brackets indicate current price is over target). If AUB meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

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