Scor: Oddo BHF lowers TP
(CercleFinance.com) - While maintaining an 'outperform' rating on Scor shares, Oddo BHF has lowered its target price for them from E36 to E28, following a very significant profit warning in life reinsurance, given the actions taken on reserves and an experience gap that continues to be negative.
Following this profit warning, the broker now expects a net loss of E208m for Q2 and E247m for FY 2024 (down 68% on its previous forecast).
Beyond the strong negative reaction in the short term, analysts believe that Scor, after recovering its profitability in property-casualty reinsurance over the past 18 months, should succeed in gradually improving its profitability in life reinsurance.
In the broker's opinion, the strategic plan update in December should help reassure the market about Scor's prospects, and the stock is trading at low multiples (based on its 2025-26 forecasts).
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
Following this profit warning, the broker now expects a net loss of E208m for Q2 and E247m for FY 2024 (down 68% on its previous forecast).
Beyond the strong negative reaction in the short term, analysts believe that Scor, after recovering its profitability in property-casualty reinsurance over the past 18 months, should succeed in gradually improving its profitability in life reinsurance.
In the broker's opinion, the strategic plan update in December should help reassure the market about Scor's prospects, and the stock is trading at low multiples (based on its 2025-26 forecasts).
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.