Question of the Week

Questions of the Week

Co-founder of the Switzer Report
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Question 1: The ASX (the listed company) has a great chart and reasonable dividend. I see Credit Suisse has a target price of $60 on it. Most brokers have a sell or hold. Why is the ASX not good buying for conservative investor looking for fair dividend with growth?

Answer: I’m with the brokers regarding the ASX and think it’s horribly expensive. A sell!

According to FNArena, a consensus broker target price of $60.10, 21% below the current price of $76.10. 2 neutral recommendations, 6 sell recommendations. Trading on a forecast PE of 30 times FY19 earnings, 29 times FY20 earnings.

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