Swiss Re: share falls on broker downgrade
(CercleFinance.com) - On Tuesday Swiss Re is one of the sharpest fallers in Zurich's SMI index after Credit Suisse downgraded its rating on the share to "underperform" with a target price of 81 Swiss francs.
In mid-afternoon trading, the Swiss Re is down 1.3%, underperforming the SMI (-0.4)%. The share has now fallen by 36% YTD.
"The shares look inexpensive; however, we do not expect a rerating until proof of an underwriting turnaround is delivered," Credit Suisse says in a report on re-insurers.
"The dividend appears secure, although many names in the sector have similarly high yields and face significantly less risk from COVID-19," the broker adds.
Credit Suisse says that it currently prefers Germany's Hannover Re in the sector.
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