Recent research on SUN has outlined a number of earnings hurdles the company will face for the rest of 2108 and into next year.
The hurdles include a higher trajectory of operating costs, findings of the royal commission on the insurance industry and lower Gross Written Premium growth.
All of these combined will likely lead to a lower underlying profit margin outlook.
Technically, our ALGO engine triggered a sell signal last November at $14.20 and we see price resistance in this area.
Our initial downside target is $13.35, followed by $12.90 over the medium-term.