Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Strong earnings lead CFRA to boost price target for Generali shares

EditorEmilio Ghigini
Published 05/21/2024, 08:36 AM
ARZGY
-

On Tuesday, CFRA maintained a Buy rating on Assicurazioni Generali (BIT:GASI) SpA (G:IM) (OTC: ARZGY) and increased the price target for the shares from EUR25.00 to EUR27.00.

The firm cited the insurer's solid first-quarter performance and an improved return on equity (ROE) as the basis for the upgraded target.

Generali's operating profit for the first quarter of 2024 saw a year-over-year increase of 5.5%, reaching EUR1.9 billion, which aligned with consensus estimates. This growth was attributed to positive results across all business segments.

Notably, gross written premiums surged by 21.4% compared to the previous year, totaling EUR26.4 billion. This significant growth was fueled by positive developments in both the Life and Property & Casualty (P&C) sectors, with Life net inflows returning to positive levels.

The firm's diversified insurance and asset management model, coupled with a robust capital position, has enabled Generali to reaffirm its strategy targets for 2024.

Analysts believe that Generali's commitment to matching increased shareholder remuneration prospects will be well-received by investors, positioning the company favorably among major multiline insurers.

Further optimism is expressed regarding Generali's ability to surpass its cash and capital targets outlined in the Lifetime Partner 24 strategic plan. This confidence is rooted in the company's strong performance in the P&C segment.

The new price target reflects a price-to-book (P/B) ratio of 1.45x for the year 2024, which represents a premium over the five-year average P/B ratio of 1.1x. This premium is justified by Generali's enhanced ROE, according to the firm.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.