Analysts at RBC Capital Markets hiked their target price on specialist insurance business Beazley from 775.0p to 975.0p on Monday, stating the stock's "re-rating journey starts here".
Source: Sharecast
RBC Capital said Beazley's FY23 update was "a clearing event" for the company, with higher than expected capital returns - and distribution via buybacks - plus its new chief financial officer appointment.
The Canadian bank, which said Beazley remains its 'top pick' in the sector, also pointed out that operational delivery remained strong and so was the company's outlook.
"Yet the shares still trade on just 1.2x 2024e P/B against ROEs of 21%, and with prospect of double-digit yields," said RBC. "We introduce our FY26e forecast, and roll forward our valuation using FY24e BVPS assuming an unchanged P/B multiple of 1.8x giving a new PT of 975p (from 775p)."
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