SUN surged over 5% yesterday following a strong 1H22 result which beat expectations. Cash earnings of $361m were well ahead of the anticipated ~$330m, plus the dividend of 23c was better than expected putting the stock on a estimated fully franked yield in excess of 5% over the next 12-months. While it was a challenging half the general insurance division benefitted from higher premiums, lower catastrophes and a better insurance margin, potentially a good read through for the insurance sector in general.
In yesterdays “The Match Out Report” we said MM was neutral to bullish SUN but aggressive players in search of yield could now be long SUN with stops under $11.50 – only a 4.5% risk whereas we can see 15-20% upside, pretty good risk / reward in our opinion.
MM is neutral / bullish SUN targeting a test of the $14 area
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