HALISTER1: Suncorp Falls Most in Three Months After Analysts Downgrade

Suncorp Falls Most in Three Months After Analysts Downgrade

(Bloomberg) -- Shares drop as much as 4.3%, most since Feb. 11 as Credit Suisse and UBS cut ratings.
  • Co. faces “near-term headwinds” of lower bond yields,lack of premium rate increases which may impact share price, Credit Suisse analysts led by Andrew Adams -- who cut the co. to neutral from outperform -- said in note to investors
    • Margin improvement diminishing as rev. growth slows; Special div. less likely amid capital pressures
  • UBS analysts led by James Coghill -- who cut Suncorp to neutral vs buy -- say co. closer to fair value after gaining ~15% since its interim profit in Feb.
  • NOTE: SUN up almost twice the increase for S&P/ASX200 index
  • NOTE: Suncorp yday forecast low single digit growth in GWP
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
SUN AU (Suncorp Group Ltd)

People
Andrew Adams (Credit Suisse Holdings USA Inc)
James Coghill (UBS Securities LLC)

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