Tag: ASX:SUN

Since posting a low of $13.30 on June 1st, shares of SUN have rallied over 11% and reached a 1-year high of $14.80 on Friday.

The selling pressure from the May 25th ACCC report on insurance rates seems to have subsided for now. However,  the scaling back of margins and other industry headwinds are still in play.

Technically, internal momentum indicators show that the share price is in overbought territory and a short-term correction is likely.

We see strong resistance in the $15.00 area and initial support just above $13.80.

Investors can trade the short side of SUN on our SAXO Go CFD platform. For more information about trading opportunities with CFDs, call our office at 1-300-614-002

Suncorp

Our Algo Engine recently triggered a  sell signal in Suncorp and we highlight the resistance beginning to build at $14.10

The short-term momentum indicator is now trending lower which suggests  $13.50 is a reasonable downside target.

Suncorp

Recent research on SUN has outlined a number of earnings hurdles the company will face for the rest of 2108 and into next year.

The hurdles include a higher trajectory of operating costs, findings of the royal commission on the insurance industry and lower Gross Written Premium growth.

All of these combined will likely lead to a lower underlying profit margin outlook.

Technically, our ALGO engine triggered a sell signal last November at $14.20 and we see price resistance in this area.

Our initial downside target is $13.35, followed by $12.90 over the medium-term.

Suncorp

Shares of SUN are down 1% in early trade at $13.76.

A research note from a local investment bank has lowered the guidance on SUN to “under-perform” and adjusted their price target to $12.45.

The report cites higher operating costs and lower margins to rationalize the lower price.

Our ALGO engine triggered a sell signal in SUN at $14.05 on November 10th; we agree with the downside target of $12.45.

SunCorp

After releasing a less-than-stellar H1 earnings report on February 15th, shares of SUN have rallied close to 7.5% from $12.60 to $13.50.

We believe this relief rally has run its course and the share price will resume its downtrend, which commenced back to July of last year.

The 19% drop in cash earnings was SUN’s most glaring miss in the H1 report, which will act as a headwind for the stock going forward.

Our ALGO engine triggered a sell signal at $14.05 on November 10th.  The initial downside target is $12.60, with a $14.35 stop.

SunCorp

SUN is due to release its 1H18 results on Thursday 15 February.

We are expecting NPAT of $510m, which is around 50% of the full year target of $1.05b

FY18 EPS growth should be around 5% and the dividend will remain flat at $0.73 placing Suncorp on a forward yield of 5.3%.

Our Algo Engine triggered a sell signal on the recent “lower high” formation and, therefore, we do not hold this name in our model.

Our ALGO engine triggered a sell signal in SUN on November 29th at $14.25.

After trading in a sideways pattern for over two weeks, the share price has moved lower and closed Friday’s session at $14.05.

The internal momentum indicators are pointing lower and a break of the $13.85 level will likely accelerate the technical down move into the $13.20 area.

With a PE ratio of 17 and a  price to earnings growth ratio of 1.69, we consider a fair value price just above $13.00.

Suncorp