First half operating earnings were ahead of UBS estimates. FY21 guidance has been tightened at the top end, with EBITA of $245-255m. Network gross written premium was 6% ahead of UBS estimates and grew 13.9% in the half.
Equity broking was the surprise, with strong operating leverage likely driven by lower expenses. Buy rating and $4.38 target retained.
Target price is $4.38.Current Price is $4.13. Difference: $0.25 – (brackets indicate current price is over target). If SDF meets the UBS target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).