In our “HOT” stock column today, Head of Asian Desk at Morgans Financial Limited, Raymond Chan, explains why Morgans regards Suncorp Group Ltd (SUN) as a stock to accumulate.
“Suncorp Group Ltd (SUN)’s financial year 2025 group net profit after tax (NPAT) ($1,823m) was +4% above consensus, and +22% on the pcp,” Raymond said.
“We saw this a solid result across the board, with guidance into financial year 2026 pointing to further underlying insurance trading ratio improvement (on a like-for-like basis)
“We lift our SUN financial year 2026F/financial year 2027F cash earning per share (EPS) by 6%-7% reflecting higher reported insurance trading ratio forecasts (12.3%-12.4%) over the next two years, and the impacts of the new buyback.
“Our valuation rises to $23.42 (previously $22.85).
“With a solid enough outlook continuing into financial year 2026, and SUN having an approx. 17% total shareholder return (TSR) on a 12-month view, we maintain our ACCUMULATE call,” Raymond said.