Suncorp

What are your thoughts on Suncorp (SUN)?

A: I am neutral on Suncorp.

Attractive dividend yield, PE okay – however, I am not a huge fan of the insurance/banking model.

I also prefer the major banks to the regional banks – although I must admit, I have been wrong on this view (according to the market) for the last 12 months or so.

Taking a look at the brokers – again, neutral. According to FN Arena, sentiment is neutral at 0.0 (range -1.0 is most negative, to +1.0 most positive); consensus target price is $13.72 – marginally higher than the current price. Forecast PE for FY 16 13.2, div yield 6.6%.


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