Source: Sharecast
Berenberg stated the key catalyst for MONY's shares remains an improvement in top-line growth, which was likely to be driven by an improvement in motor premiums. "While there are early green shoots, they remain circa 10% below the prior peak," said Berenberg.
The German bank, which has a 'buy' rating on the stock, said the re-platforming that MONY has undergone over the past four years should mean that a large step-up in investment will not be required and that the company can evolve quickly as AI affects the industry.
"MONY is confident that there are further operational efficiencies to be gained from the re-platforming and as AI is applied across the business," said the analysts.
"We update our estimates to account for the sale of the stake in Ice Travel Group (ITG) and make divisional estimates based on the trading update, which sees our adjusted EBITDA forecasts fall by 2%. MONY trades on a P/E of 10.2x and an FCFe yield of 10%."
Reporting by Iain Gilbert at Sharecast.com