Having won its appeal with the Australian Competition Tribunal, ANZ Bank ((ANZ)) can now buy the banking division of Suncorp Group in a transaction expected to complete around mid-2024, notes Morgans.

Management at Suncorp has previously stated the bulk of net sale proceeds will be returned to shareholders, points out the broker, via a combination of pro rate capital return and a smaller ($300m) full franked special dividend.

After Morgans allows for these flows, transaction accretion and a valuation roll-forward, the target for Suncorp Group rises to $16.42 from $15.07. Add.

Sector: Insurance.

Target price is $16.42.Current Price is $15.29. Difference: $1.13 - (brackets indicate current price is over target). If SUN meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2024 Acquisdata Pty Ltd., source FN Arena