Source: Sharecast
RBC Capital Markets said the discussion focused on Admiral's "competitive advantage in UK Motor and Household", its two largest divisions, and factors behind its more than 8% earnings per share growth ambitions over the next five years, supported by its target to double profit contributions from other lines by 2028.
The Canadian bank said it remains "comfortable" with recently raised EPS forecasts, and considers current multiples to represent "an attractive entry point" as the outlook for UK Motor pricing begins to improve.
"Our target multiple is 14x FY2027E EPS which we think is appropriate with management willing to commit to high single digit EPS growth through 2030. This is supported by a multistage DCF including forecasts out to 2030E. This assumes 'midterm' low-single digit PBT growth through 2035, with Motor lines (including European Insurance) growing at 3% to reflect a structural reduction in claims inflation due to improving motor safety," said RBC Capital.
"Thereafter, we assume flat Motor lines PBT to reflect possible attrition from improving driving safety, with a terminal growth rate for the entire business of -1% after 2040, against the new outlook from Admiral management for UK motor premium growth for the next 20 years."
Over at Berenberg, analysts hiked their target price on marine engineering services firm James Fisher from 615p to 790p on Wednesday following the group's full-year results a week earlier.
Berenberg noted that James Fisher's FY25 results on 11 March included adjusted underlying earnings of £28.6m, 4% ahead of its expectations, with self-help measures taken over the last three three years starting to drive revenue and profit growth.
The German bank also said it expects further self-help benefits in FY26, especially supply chain improvements, and that this was giving management "increased confidence" in achieving its medium-term targets.
Berenberg, which has a 'buy' rating on the stock, said James Fisher's strategic progress had allowed it to reduce James Fisher's peer group discount from 25% to 15%, which led to the 175p bump to its share price.
"The shares continue to trade at a discount to historical averages as investors await the profit inflection. The discount related to high financial leverage has yet to fully unwind," added Berenberg.
Reporting by Iain Gilbert at Sharecast.com