Ann: FY22 Results Presentation, page-3

Just got this in an email ...Tue, 9 Aug at 9:35 am

Tuesday, 9 August 2022

SUN - SUNCORP GROUP LIMITED

Credit Suisse rates SUN as Outperform (1) - Suncorp Group reported FY22 cash earnings of $673m, marginally above consensus, assesses Credit Suisse.

The results showed growth across the consumer and commercial sectors as well as New Zealand.

The broker considers the FY23 guidance for gross written premiums of mid to high single digit as conservative, while margin pressures should be offset by the 9.9% and 4.9% increase in house and for motor rates, respectively.

Credit Suisse reduces the earnings forecasts by -2.5% for FY23 and FY24 to account for margin pressures.

Outperform recommendation maintained and the target price is lowered to $13.70 from $14.09.

Target price is $13.70 Current Price is $11.11 Difference: $2.59 If SUN meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges). Current consensus price target is $13.12, suggesting upside of 18.1%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY23:

Credit Suisse forecasts a full year FY23 dividend of 78.00 cents and EPS of 96.00 cents . At the last closing share price the estimated dividend yield is 7.02%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.57. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 90.6, implying annual growth of N/A. Current consensus DPS estimate is 70.1, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.3.

Forecast for FY24:

Credit Suisse forecasts a full year FY24 dividend of 83.00 cents and EPS of 123.00 cents . At the last closing share price the estimated dividend yield is 7.47%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.03. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 110.0, implying annual growth of 21.4%. Current consensus DPS estimate is 80.0, implying a prospective dividend yield of 7.2%. Current consensus EPS estimate suggests the PER is 10.1.

Market Sentiment: 0.5All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources