Generali: Oddo BHF still on hold

(CercleFinance.com) - Oddo BHF maintains its "neutral" rating on Generali shares with an unchanged target price of E21.


The broker reports that yesterday Generali announced that it had reached an agreement with Libery Mutual to acquire its subsidiary Liberty Seguros for a cash consideration of around E2.3bn.

Oddo BHF says that this acquisition will enable Generali to strengthen its presence in non-life insurance in Spain, where the group will become the No. 4 player, with a 6.1% market share (compared with its current position of No. 6 with a 4.3% market share).

Generali expects "significant synergies" over time.

Meanwhile, Oddo BHF believes that the acquisition of Liberty Seguros is strategically attractive and that, post synergies, it should generate a RoI clearly in excess of 10%.


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