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Thoughts on Suncorp (SUN) please

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Question asked 22/03/2024

Thoughts on Suncorp (SUN) please

Hi MMatters Team SUN - trading currently $16.07 - (Price Target $16.60) Do you know when the Sale of Suncorp Bank to ANZ will be finalized and the proceeds ($3.15/share approx) will be returned to shareholders? Your last note on Suncorp on 7/3/24 was very positive " We can see SUN outperforming the sector, along with QBE, through 2024/5, and it looks good value under $15. At what price do you feel SUN is fully valued? If you were a holder - would you sell at this value or hold for the proceeds to be paid. Will part of the distribution be a franked dividend or all return of capital? regards Debbie

Answer

Hi Debbie,

ANZ’s $4.9bn merger with Suncorp’s banking arm looks set to go ahead but the takeover remains subject to the amendment of the State Financial Institutions and Metway Merger Act plus final approval from the Federal Treasurer. Assuming this gets the green light, the sale of Suncorp Bank is expected to be completed around mid-2024 – we believe it will go ahead.

We remain bullish the Financial Sector through 2024 with SUN looking on track to make fresh post-GFC highs, in the $16.50-17 area.

Hence, if we held SUN, we would only look to sell if we found something more appealing from a risk/reward perspective.

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Suncorp Group Ltd (SUN)

LAST UPDATED 22/03/2024 12:56

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