Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.
The broker expects QBE Insurance Group to deliver further attritional claims ratio improvement on the back of strong premium rate increases.
Morgans lowers forecast FY21 EPS by -1% though lifts FY22 by 5% to reflect stronger margin assumptions due to the favourable pricing environment. The broker's price target rises to $12.17 from $11.83. The Add rating is maintained.
Target price is $12.17.Current Price is $10.52. Difference: $1.65 - (brackets indicate current price is over target). If QBE meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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