Scor: Morgan Stanley downgrades stock
(CercleFinance.com) - On Wednesday Morgan Stanley downgraded on Scor shares from 'overweight' to 'equal weight', with a target price reduced from E36 to E25.
The broker describes the French reinsurance group's profit warning yesterday as 'disappointing'.
While the company's property-casualty (P&C) business and capital position remain intact, the lack of visibility surrounding its life and health (L&H) businesses leads us to stay away from the stock, the analyst explains.
Morgan Stanley points out that its former favourable opinion on the stock was previously based on an attractive valuation compared with peers, with a view to a stabilisation of results likely to lead to a stockmarket revaluation.
Following yesterday's disappointment, the broker expects Scor to pay a dividend of E1.80 this year, the minimum amount to which it had committed itself, whereas the consensus was previously targeting a coupon of E1.90.
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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.
The broker describes the French reinsurance group's profit warning yesterday as 'disappointing'.
While the company's property-casualty (P&C) business and capital position remain intact, the lack of visibility surrounding its life and health (L&H) businesses leads us to stay away from the stock, the analyst explains.
Morgan Stanley points out that its former favourable opinion on the stock was previously based on an attractive valuation compared with peers, with a view to a stabilisation of results likely to lead to a stockmarket revaluation.
Following yesterday's disappointment, the broker expects Scor to pay a dividend of E1.80 this year, the minimum amount to which it had committed itself, whereas the consensus was previously targeting a coupon of E1.90.
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.