Analysts neutral on Suncorp
An analyst’s report is suggesting that while Suncorp-Metway has pulled back from the sale of its bank and wealth management operations, a deal is likely to be brokered at a later point in time.
The analyst’s report, produced by Merrill Lynch, adopts a neutral recommendation on Suncorp-Metway noting, however, that in the absence of a sale of its bank and wealth management divisions the company needs to strengthen its capital base, restore confidence in management through appropriate change and demonstrate the viability of its bank model and its structural positioning.
Discussing this week’s decision to withdraw the sale of its bank and wealth management divisions from the table, the analysis said that this might ultimately prove a prudent step by the board, but added that the “the share response tells that no one is buying into the viability of SUN as a standalone at this point”.
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