Credit Suisse assesses earnings should benefit from volatility in the short term. ASX is considered the most defensive stock amongst diversified financials and it carries no debt.
While the valuation may be challenging, given the low growth outlook, the broker believes it deserves a safety premium. A Neutral rating is reiterated and the target raised to $73 from $70.
Sector: Diversified Financials.
Target price is $73.00.Current Price is $77.09. Difference: ($4.09) – (brackets indicate current price is over target). If ASX meets the Credit Suisse target it will return approximately -6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
