still shining... analysts calls

A couple of analysts calls on SUN:

Shares in the financial services group were 14¢, or 1 per cent, higher at $13.72, having earlier hit a new two year high of $13.75¢, as investors gave the thumbs up to Friday's strong interim result and management guidance for 2004. But analysts were split on whether Suncorp is trading at fair value. Goldman Sachs JBWere upgraded its EPS forecasts for 2004 and 2005 by 13.1 per cent and 9.8 per cent respectively. But GSJBW also said with the stock trading at a price earnings ratio of 12.4 times and a 4 per cent premium to its valuation it believes Suncorp is "running ahead of fundamentals." The broker kept its marketperform rating. "To view that Suncorp is going to outperform its peers or the market from these levels one must believe that it will not only materially exceed current analyst estimates, but do so to a larger extent than its peers might," GSJBW said. "Given the quality of the peers in question, we believe this to be a relatively risky call." UBS upgraded its forecasts by about 9 per cent and 4 per cent respectively for the next two years. The broker raised its price target by 4 per cent to $15 and maintained a buy rating. It said at 11.7 times forecast earnings for 2005 Suncorp is "inexpensive" given the strong dividend yield , diversified earnings stream and removal of some risk factors (such as Queensland compulsory third party insurance).