Australian Broker Call

Shaw and Partners rates A1M as Buy, High Risk (1) -

A significant remnant mining opportunity for AIC Mines exists at Eloise, notes Shaw and Partners. The broker was commenting after the release of high grade results from historic remnant areas.

These areas provide near-surface mineralisation to supplement production when between stoping areas, explain the analysts. Formerly, the company was focused on depth and strike extensions of known orebodies.

Shaw remains bullish on copper and sees AIC Mines as fundamentally cheap. The Buy, High Risk and 90c target are retained.

Target price is $0.90 Current Price is $0.56 Difference: $0.345
If A1M meets the Shaw and Partners target it will return approximately 62% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Bell Potter rates AAC as Buy (1) -

Australian Agricultural Co's FY24 operating earnings of $50.5m beat Bell Potter's forecast for $49.2m.

Liveweight (lwt) sold rose by 33% year-on-year, but revenue per kg lwt fell by -18%, while earnings/kg lwt sold was down by -44%, reflecting lower live and meat sales values, explains the broker.

The Buy rating is retained with the analysts noting domestic cattle prices have rebounded and remain undervalued relative to meat price indicators, while agricultural land and water asset values have also remained robust over 2023.

The $2.00 target is unchanged.

Target price is $2.00 Current Price is $1.39 Difference: $0.61
If AAC meets the Bell Potter target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates AIA as Buy (1) -

Citi assesses the outlook for Auckland International Airport regarding the company's April's passenger (PAX) numbers with a decline in international traffic, including transits of -14% below FY19 levels, against a -9% deterioration in March.

Domestic traffic also lagged, running at -13% below FY19 levels.

The broker views the PAX forecasts at 10.3m international and 8.6m domestic for FY24 as challenging to achieve for the company.

The FY24 NPAT forecast from the Citi analyst is retained at the higher end of management's guidance range of NZ$260m0NZ$280m, due to the conservative projections from management.

Regulatory uncertainty surrounding the new pricing regime (PSE4) persists. Citi anticipates the Auckland International Airport targeted returns will be protected.

A Buy rating is retained as the stock is viewed as undervalued. Target is lowered to NZ$9.20 from NZ$9.50.

Current Price is $6.91. Target price not assessed.

Current consensus price target is $8.25, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates ALL as Buy (1) -

Upon first glance, it seems Aristocrat Leisure's H1 performance has significantly beaten Citi's and market consensus forecasts. The broker points towards lower than expected corporate costs driving most of the beat.

Aristocrat has added $350m to its share buyback and announced a strategic review of the digital assets excluding Social Casino, which signals a potential sale and is seen as a positive. An interim dividend of 36cps was declared, in line to Citi's expectations.

While the US operations underperformed slightly, the Rest of World EBITA came in 23% ahead of the broker's forecast, driven by volume growth and product mix. Spending on digital is being scaled back modestly.

Buy. Target $51.

Target price is $51.00 Current Price is $40.74 Difference: $10.26
If ALL meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $47.26, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates ALQ as Neutral (3) -

With ALS Ltd set to report FY24 results on May 21, UBS forecasts profit (UNPAT) of $315m, while consensus is expecting $314m.

The analyst believes investors will be focused on any qualitative FY25 outlook commentary around geochemistry volumes.

The Neutral rating and target price of $13.30 are retained.

Target price is $13.30 Current Price is $13.45 Difference: minus $0.15 (current price is over target).
If ALQ meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.78, suggesting downside of -7.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Shaw and Partners rates BC8 as Buy, High Risk (1) -

First released in July 2023, the scoping study for Black Cat Syndicate' s Coyote project has been updated, and highlights the project's gold price leverage, according to Shaw and Partners.

A $100/oz increase in the gold price results in $19m of additional cashflow, points out the broker.

Because the project has established infrastructure, a restart can occur quickly, note the analysts, with potential to produce gold seven months after the commencement of process facility refurbishment.

The Buy, High Risk rating and 74c target are retained.

Target price is $0.74 Current Price is $0.33 Difference: $0.41
If BC8 meets the Shaw and Partners target it will return approximately 124% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates CHL as Add (1) -

Morgans explains the PaulCamper migration onto the core Camplify Holdings platform has taken longer-than-expected due to technical compexities, noted management via a trading update.

As a result, FY24 revenue has been negatively impacted to the tune of -$3.5-$4m, though the broker expects the delay is a one-off.

The technical migration is now complete, and the company expects PaulCamper to return to normal trade in June, highlights the analyst.

The target falls to $2.55 from $2.85 after the broker's marginal downward revisions to FY25-FY26 revenue forecasts are partly offset by cost savings post the integration. The Add rating is maintained.

Target price is $2.55 Current Price is $1.10 Difference: $1.45
If CHL meets the Morgans target it will return approximately 132% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates CHL as Buy (1) -

Camplify Holdings reported the migration of the PaulCamper (PC) to its platform had doubled to two from one month due to technical issues and customer migration problems. 

Ord Minnett notes the delay will impact on FY24 revenue by -$3.5m to -$4m, but the issue is now resolved and the company has resumed normal trading.

Operationally, the transition will now allow for forecast cost savings of -$3m-$4m, and management continues to rollout the MGA Myway Insuarnce product across all markets which should be finished by 1Q25.

Buy rating retained. Target price trimmed to $2.39 from $2.71, reflecting the downgrade in the FY24 forecast.

Target price is $2.39 Current Price is $1.10 Difference: $1.29
If CHL meets the Ord Minnett target it will return approximately 117% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Bell Potter rates CSR as Hold (3) -

CSR's FY24 operating EBITDA (excl. property) of $328.2m just missed the consensus forecast and slightly beat Bell Potter's estimate. 

Aluminium earnings came in at the lower end of guidance and Buiding Products sales revealed a materially sharper decline than consensus had forecast, note the analysts.

While the broker raises FY25 and FY26 EPS forecasts, the $9.00 target continues to reflect the Saint-Gobain indicative takeover price. The Hold rating is unchanged.

The ex-date for CSR’s 12c fully franked dividend is the effective date of the scheme implementation with Saint-Gobain, which is slated for June 19, explain the analysts.

Target price is $9.00 Current Price is $8.89 Difference: $0.11
If CSR meets the Bell Potter target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $7.41, suggesting downside of -16.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates GUD as Buy (1) -

Citi came away from the G.U.D. Holdings Investor Day with a positive take on the outlook for the company, including increased product development spending.

Autopacific Group (APG) will target South Africa for expansion and this is viewed as logical due the similar target vehicles with the Australian and New Zealand markets.

Citi points to a slow ramp up with -$3m capex in South Africa that could offer volumes similar to the A&NZ markets, including exports.

Management confirmed the structural re-organisation into three segments with the underperforming APG business combining other 4WD businesses, viewed as a positive by the analyst, as is the $44m additional revenue from APG.

Buy rating and $12.80 target unchanged,

Target price is $12.80 Current Price is $11.01 Difference: $1.79
If GUD meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $12.80, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates IAG as Buy (1) -

Citi analyses the Australian and New Zealand Insurance industry, considering Insurance Australia Group (IAG) and Suncorp Group.

The analyst highlights growing concerns about the recent trading history of IAG, the Greensill issue and ASIC pricing problems.

Post in-depth analysis, Citi assesses IAG is winning on the New Zealand exposure, investments, expense reduction possibilities, reinsurance, claims performance, brand strength and relative value.

The broker expects positive short term drivers, improved margins and robust top line growth will benefit both insurers, but overall IAG scores more highly on the total analysis. Citi has a slight preference for IAG over  Suncorp Group.

No change in the broker's earnings forecasts. Buy rating and $6.75 target retained.

Target price is $6.75 Current Price is $6.32 Difference: $0.43
If IAG meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.16, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates IAG as Outperform (1) -

In Macquarie's view, Allianz Australia, the fourth-largest insurer in the country, is the best read-through for Insurance Australia Group and Suncorp Group's pricing, margins, and catastrophe experience.

The broker gleans from Allianz's latest results that premium rates continued to be exceptionally strong, and, despite the slowing of broader economic trends, competition for new business is not changing systemically.

The Outperform rating and $6.40 target for Insurance Australia Group are maintained, with Macquarie noting this insurer is best placed to benefit from the trends identified during the Allianz review.

Target price is $6.40 Current Price is $6.32 Difference: $0.08
If IAG meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.16, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates IAG as Equal-weight (3) -

After reviewing March quarter results for Allianz Group, Morgan Stanley sees positive implications for both Insurance Australia Group and Suncorp Group relating to both pricing and loss ratios.

Allianz Australia reported a 11.8% pricing increase versus 10% in the prior December and September quarters, while premium growth rose by 14% year-on-year, up from around 11.5% by comparison to the same two quarters.

Management at Allianz noted a better attritional loss ratio following price action against high claims inflation.

The $5.45 target and Equal-weight rating are unchanged for Insurance Australia Group. Industry view: In-line.

Target price is $5.45 Current Price is $6.32 Difference: minus $0.87 (current price is over target).
If IAG meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.16, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates IAG as Neutral (3) -

UBS believes Allianz Australia's 1Q results provide a positive read-through for Insurance Australia Group, Suncorp Group and QBE Insurance.

Allianz's gross written premium (GWP) metric rose by 14.2% in constant currency terms, largely driven by repricing, explains the broker. Renewal rate change on renewals also rose by 11.8%, an acceleration from the 9.8% in the 1Q of 2023.

The repricing experience appears to have been relatively broad-based, which runs contrary to consensus expectations for repricing to moderate this year, highlights the analyst.

The $6.50 target and Neutral rating are retained for Insurance Australia Group.

Target price is $6.50 Current Price is $6.32 Difference: $0.18
If IAG meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.16, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates IEL as Hold (3) -

International student and broader migration policies are being tightened across all of IDP Education's major destination markets, explains Morgans.

As a result of these changes, the broker expects a re-basing of ‘system’ numbers for International student enrolments and English test demand into FY25.

Morgans allows for more restrictive macro settings in its forecasts, resulting in an around -15% cut to FY25 EPS.

Further restrictive policy can’t be ruled out in the UK, highlights the broker, as the Government has to set migration policy prior to the late-2024 election.

The target falls to $20.20 from $23.10 and the Hold rating is unchanged.

Target price is $20.20 Current Price is $17.00 Difference: $3.2
If IEL meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $22.58, suggesting upside of 38.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates IMD as Neutral (3) -

The latest trading update by mining technology company Imdex at the Macquarie Australia Conference on May 7 highlighted junior raisings on the ASX have remained subdued, despite strong gold and copper prices, observes Citi.

While drilling activity in April has stepped down -2% year-on-year, this is -47% below April 2022 levels, explains the broker.

As there is uncertainty around the timing for a recovery, the broker notes a heightened risk of prolonged weakness in overall volumes. It's now felt the 2H should be viewed as a new half-yearly base for FY25.

For Neutral-rated Citi to become more upbeat on Imdex, a step change in junior financings is required, or evidence of commitment from majors to expand their drilling programs.

Target price is $2.20 Current Price is $2.10 Difference: $0.1
If IMD meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.11, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates IPL as Neutral (3) -

Underlying, today's H1 release by Incitec Pivot has provided a positive surprise, comment Citi analysts upon first assessment. Underlying EBIT of $249m compares with $213m expected by market consensus.

Citi points out it was all about explosives, with the EBIT contribution from Fertilisers only $10m. There was no further news on the proposed sale of the fertilisers business.

Neutral. Target $2.65.

Target price is $2.65 Current Price is $2.82 Difference: minus $0.17 (current price is over target).
If IPL meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.99, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates JHX as Neutral (3) -

When James Hardie Industries reports 4Q results on May 21, Macquarie is expecting a profit (UNPAT) of US$180.3m, at the upper end of US$165-185m guidance. Consensus currently sits at US$179.6m.

The broker believes the results will be supported largely by a firm new construction market. Large-scale remodeling activity has not been as soft as feared..

The Neutral rating and $62.40 target are retained.

Target price is $62.40 Current Price is $54.65 Difference: $7.75
If JHX meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $61.58, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates JIN as Overweight (1) -

Positively for incremental SaaS revenue, according to Morgan Stanley, and validation ahead of a decision on the future of LotteryWest's digital offer, Jumbo Interactive has announced a contract with the RSPCA.

It is a three-year SaaS deal with an expected total transaction value (TTV) of around $10m, which represents around a third of the broker's incremental SaaS revenue forecast for FY25. It's felt there is scope to materially grow revenue over time.

Overweight rating retained. Target price is $20.80. Industry view: In line.

Target price is $20.80 Current Price is $16.59 Difference: $4.21
If JIN meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $17.44, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates QBE as Buy (1) -

UBS believes Allianz Australia's 1Q results provide a positive read-through for Insurance Australia Group, Suncorp Group and QBE Insurance.

Allianz's gross written premium (GWP) metric rose by 14.2% in constant currency terms, largely driven by repricing, explains the broker. Renewal rate change on renewals also rose by 11.8%, an acceleration from the 9.8% in the 1Q of 2023.

The repricing experience appears to have been relatively broad-based, which runs contrary to consensus expectations for repricing to moderate this year, highlights the analyst.

The $21 target and Buy rating are retained for QBE Insurance.

Target price is $21.00 Current Price is $17.62 Difference: $3.38
If QBE meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $18.72, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates S32 as Neutral (3) -

South32 provided a strategy update offering some more colour on a well-flagged existing strategic outlook, notes Citi.

Management re-iterated the transformational impact of the Met Coal sale and the balance sheet at March end shows a net cash position of US$73m with revenue composition shifting approximately 87% towards base metals, primarily alumina and aluminium.

Citi points to management's positive outlook on aluminium, copper, and, controversially, zinc, predicting demand growth in various sectors against constrained global supplies.

The analyst makes minor EBITDA forecast changes around +/- 2% on the back of a higher alumina price offsetting higher alumina and aluminium costs.

The target price is revised to $3.65 from $3.80 due to Worsley Alumina cost guidance for FY25-FY28 and increased capital expenditure expectations.

Unchanged Neutral rating.

Target price is $3.65 Current Price is $3.67 Difference: minus $0.02 (current price is over target).
If S32 meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.73, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates S32 as Overweight (1) -

During a strategy and business update, South32 guided to FY25 capex of around -US$1,190m which was broadly in line with the consensus forecast, but 10% better than Morgan Stanley's forecast.

Management noted Hemosa is on track for first production in 2H FY27 (in line with the broker's expectation) with an initial operating life of around 28 years.

Upcoming studies due in FY25, note the analysts, include Worsley Alumina for new mining areas and Sierra Gorda for the fourth grinding line.

Overweight. Target $3.35. Industry view: Attractive.

Target price is $3.35 Current Price is $3.67 Difference: minus $0.32 (current price is over target).
If S32 meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.73, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates SPK as Upgrade to Outperform from Neutral (1) -

Spark New Zealand has downgraded FY24 earnings (EBITDAI) guidance by -3.8% at the midpoint of the range, reflecting the impact of further softness in public and private sector spending, explains Macquarie.

IT service revenue is down due to government cost-cutting and project delays, explains the analyst. There were also lower enterprise sales, as well as lower handsets sales (courtesy of weaker consumer spending), notes the broker.

Macquarie upgrades its rating to Outperform from Neutral on valuation after recent share price weakness. The target falls to NZ$5.08 from NZ$5.29.

Current Price is $3.84. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates SUN as Neutral (3) -

Citi analyses the Australian and New Zealand Insurance industry, considering Suncorp Group and Insurance Australia Group Group.

Post the divestment of the bank and NZ Life, there is upside potential for a more premium rating for Suncorp Group, the broker argues, as the insurer focuses on General Insuarnce with greater potential for cut cutting.

The analyst also views Suncorp Group as the winner for growth in gross written premium domestically and capital return with possibility of a lower share count, underpinning better short term EPS growth.

Citi's earnings forecasts remain unchanged.

The broker expects positive short term drivers, improved margins and robust top line growth will benefit both insurers, but overall IAG scores more highly on the total analysis. Citi has a slight preference for IAG over  Suncorp Group.

Buy rating and $16.60 target maintained.

Target price is $16.60 Current Price is $16.22 Difference: $0.38
If SUN meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $16.61, suggesting upside of 1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates SUN as Outperform (1) -

In Macquarie's view, Allianz Australia, the fourth-largest insurer in the country, is the best read-through for Insurance Australia Group and Suncorp Group's pricing, margins, and catastrophe experience.

The broker gleans from Allianz's latest results that premium rates continued to be exceptionally strong, and, despite the slowing of broader economic trends, competition for new business is not changing systemically.

The Outperform rating and $17 target for Suncorp Group are maintained. Macquarie feels Insurance Australia Group is best placed to benefit from the trends identified during the Allianz review.

Target price is $17.00 Current Price is $16.22 Difference: $0.78
If SUN meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $16.61, suggesting upside of 1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates SUN as Overweight (1) -

After reviewing March quarter results for Allianz Group, Morgan Stanley sees positive implications for both Insurance Australia Group and Suncorp Group relating to both pricing and loss ratios.

Allianz Australia reported a 11.8% pricing increase versus 10% in the prior December and September quarters, while premium growth rose by 14% year-on-year, up from around 11.5% by comparison to the same two quarters.

Management at Allianz noted a better attritional loss ratio following price action against high claims inflantion.

The Overweight rating and $17.05 target are maintained for Suncorp Group. Industry View: In-Line.

Target price is $17.05 Current Price is $16.22 Difference: $0.83
If SUN meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $16.61, suggesting upside of 1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates SUN as Buy (1) -

UBS believes Allianz Australia's 1Q results provide a positive read-through for Insurance Australia Group, Suncorp Group and QBE Insurance.

Allianz's gross written premium (GWP) metric rose by 14.2% in constant currency terms, largely driven by repricing, explains the broker. Renewal rate change on renewals also rose by 11.8%, an acceleration from the 9.8% in the 1Q of 2023.

The repricing experience appears to have been relatively broad-based, which runs contrary to consensus expectations for repricing to moderate this year, highlights the analyst.

The $18.20 target and Buy rating are retained for Suncorp Group.

Target price is $18.20 Current Price is $16.22 Difference: $1.98
If SUN meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $16.61, suggesting upside of 1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources