Strong retail assets under management performance has seen the broker lift its earnings forecasts for the company by around 5%, which flows through to an increase in price target.
On the broker's numbers the stock is trading on around 13x FY10 earnings and it sees this as an excessive discount for any perceived risk with respect to the New Star assets and so there is no change to its Outperform rating. Sector: Diversified Financials.
Target price is $3.20.Current Price is $2.51. Difference: $0.69 - (brackets indicate current price is over target). If HGG meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).
