With the equity markets continuing to perform better than expected and with the economy continuing to improve, Citi notes the banking sector is trading on higher multiples.
A stronger peer group and Citi's expectation for a continuation of increased risk appetite sees it lift its target price to $9.00 (from $7.50) and retain its Hold call.
The broker still wants to see the banking operations sold, but notes as things improve it becomes less likely. Citi also sees better capital returns in the form of buybacks or better divs by FY11. Sector: Insurance.
Target price is $9.00.Current Price is $8.42. Difference: $0.58 - (brackets indicate current price is over target). If SUN meets the Citi target it will return approximately 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
SUN Price at posting:
$9.08 Sentiment: None Disclosure: Not Held
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