0307 GMT - Suncorp will need to increase gearing through higher debt or reinsurance if it is to meet its return-on-equity target, Morgan Stanley analyst Andrei Stadnik reckons. The Australian insurer has flagged an ambition to lift its return on tangible equity to a level that matches its best-in-class peers, which Stadnik assumes means IAG. He tells clients in a note that Suncorp could return up to A$7 billion of capital to shareholders over the next few years in pursuit of its ambition. Stadnik currently forecasts FY 2026 return on tangible equity of 35% for IAG, and 23% for Suncorp. MS has an overweight recommendation and A$20.50 target price on Suncorp shares, which are up 1.6% at A$18.61. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
November 06, 2024 22:07 ET (03:07 GMT)
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