Morgan Stanley upgrades Admiral to ‘overweight’, hikes price target.
Morgan Stanley upgraded Admiral on Monday to ‘overweight’ from ‘underweight’ as it said recent share price weakness provides a more attractive entry point, while the valuation remains below historical averages and leaves room for further re-rating given the improving backdrop.
Admiral Group
07 September 2026 12:58:30
Source: Sharecast
The bank, which upped its price target on Admiral to 4,450p from 3,575p, said UK motor is now one of the more attractive pricing pockets in European insurance as other areas remain under pressure.
Morgan Stanley noted that motor insurance CPI has accelerated to 8% growth year-on-year, while other pricing measures are beginning to follow. It said Admiral is the best way to play this theme with 90% of its business exposed to UK motor.
"Admiral is now rebuilding margins, not just maintaining them, with high single digit percentage rate increases at H1 well ahead of claims inflation," it said. "Automated vehicles remain a long-term risk, but recent L3 and Waymo developments highlight the uncertain path towards adoption."
Morgan Stanley said that trading at around 14.5x estimated 2027 price-to-earnings, Admiral remains below its 10-year average despite improving motor fundamentals.
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