Source: Sharecast
The bank said AI-driven fears that have de-rated Mony are misplaced, for two reasons: data and regulatory barriers.
"The need to maintain tight control over sensitive consumer information and to integrate with many stakeholders means that Large Language Models (LLMs) should come to view price comparison websites (PCWs) as mission-critical partners," it said.
"Indeed, on 20 Feb, Mony launched its app on ChatGPT, which should ease disintermediation fears."
Jefferies also said its analysis suggests that Mony’s SuperSaveClub (SSC) rewards program can drive better customer retention, cross-selling across verticals, and medium-term margin growth.
"This is important because the PCW sector has long relied on aggressive advertising spending to maintain consumer awareness and revenue share," it said. "SSC breaks that trade-off. We also see greater potential for SSC to improve its utility beyond a rewards program into an essential household tool."
At the current share price and amid depressed expectations, Jefferies believes the risk-reward is now skewed to the upside.
"Indeed, we believe growth tailwinds in 2026 should end the two-year de-rating," it said. "The decade-high circa 7% dividend yield at a 9x FY26 PE, bolsters the appeal of the entry point. Even our worst-case stress test keeps the yield above 5-6%, still at the high end of its historical range."
At 0925 GMT, the shares were up 3.6% at 153.80p.