- Admiral Group
- 25 April 2024 11:00:17
Source: Sharecast
The Swiss broker estimated Admiral's organic vehicle growth rate at 4.1%, forecasting that it would decline to 1% in 2021 due to its relative pricing differential and more flexible policies elsewhere.
Its traditionally lower non-shopper rate of 14.1%, versus rivals on 16.9% also left it more exposed to the upcoming FCA pricing guidelines due to a lower ability to retain clients.
Then there were the fast increases in used car prices which in April had reached a clip of 8.1%.
Lastly, and from a valuation viewpoint, the insurer's shares were trading on a 2021 price-to-earnings multiple of 20.4, which was 2.1 standard deviations greater than their five-year average.
Its shares were also trading on a PE premium of two times versus sector peer Direct Line, the broker said.
Credit Suisse also kept its 310.0p target price for the shares unchanged.