Suncorp Group Ltd (ASX: SUN) shares have been strong performers over the last 12 months.
Since this time last year, the insurance and banking giant's shares have risen almost 22%.
This leaves the company's shares now trading near three-year highs.
Have you missed the boat with Suncorp shares?
Given how much Suncorp's shares have risen over the last 12 months, you could be forgiven for thinking that you have missed the boat on this one.
However, analysts at Morgans don't appear to believe that this is the case. The broker currently has an add rating and a $14.44 price target on its shares.
Based on the current Suncorp share price of $13.41, this suggests that its shares could rise almost 8% over the next 12 months.
But it gets better. The broker is also forecasting fully franked dividends per share of 77.7 cents in FY 2023 and then 87.8 cents in FY 2024. This equates to generous dividend yields of 5.8% and 6.5%, respectively. This boosts the total potential return on offer over the next 12 months to approximately 14%.
The broker believes that Suncorp is well-positioned for the future and that its shares trade on attractive multiples. It explains:
SUN management continue to execute well and appear on track to deliver key FY23 strategic priorities. Strong price rises remain supportive of margins near term, and SUN appears well positioned for when the headwinds of inflation and bad weather ease, in our view. With SUN trading on 11.5x FY24F earnings and a 6% dividend yield, we see it as reasonable value at current levels. ADD.
All in all, if you're looking for exposure to the insurance sector, then Suncorp shares could be worth considering.
