Suncorp Group Ltd
SUN: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$91.90 | Lprr | Fgtgjpv |
Suncorp: Positive Outlook as Rate Increases and Investment Income Outpace Claims Inflation
We increase our fiscal 2024 profit forecast 4% after no-moat Suncorp provided a mostly positive update. Gross written premium, or GWP, growth ahead of the previous 10% guidance; natural hazard cost allowances unchanged; investment income benefiting from higher cash rates; and full-year margins expected to be at the midpoint of the 10%-12% guidance range. However, the short-term tailwinds are insufficiently material to move our AUD 13.50 per share fair value estimate.