Does Suncorp show the key to reporting season?

Today's report is simple in nature but powerful in its message for stocks today. Yesterday Suncorp (SUN) reported a cash profit of $1089m and a fully franked dividend of 38c, overall about a 4% miss on analysts' expectations. As would be expected the stock opened down 39c (3%) but quickly climbed its way back up to close up 9c (0.7%). The result was simply not too bad and showed promise moving forward. We were obviously pleased by its performance as SUN is the equal largest holding at 12% in the Market Matters portfolio - we remain bullish SUN, read on for our price target.
Nicholas Forsyth

Market Matters

However it's the inference from the performance of SUN yesterday on our overall market that's catching our attention today, as reporting season looms - especially Commonwealth Bank (CBA) next Wednesday.

We have two initial points:

1.  SUN remains bullish both fundamentally and technically with our target a whopping 16% higher if the broad local financials can rally only half of this the ASX200 could be well over the 5750 level in 2016.

2. In the current market "not too bad" is a buy. This ties in with our current short term bullish view for equities with fund managers sitting on record cash levels searching for some value.

Suncorp (SUN) Monthly Chart – price target over $15.50

Suncorp chart.png

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Nicholas Forsyth
Nicholas Forsyth
Market Matters

Market Matters is an online investment and share trading advisory service designed for those that want to take their wealth further. We specialise in advice for active share market investors, including those new to the markets or those with a Self...


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