CNP Assurances: Oddo confirms rating before results
(CercleFinance.com) - The insurance group will announce its Q1 2019 results on Thursday.
Oddo expects a slight increase in premiums to 8,754 million euros (+1.7%), with an expected decline in France (-0.8% e). The broker is looking for a 7.3% increase in international premium growth, particularly driven by organic growth in Brazil.
The group's revenues are expected to rise by 2.5%, with insurance and proprietary revenue rising, This growth in revenue, combined with sound cost control should enable CNP Assurances to report a 3.7% increase in its gross operating income, with its bottom line up 5.4%, Oddo says.
The broker also says that the fall in interest rates that occurred over the first quarter should result in a decline in the group's solvency margin to 184% according to its forecasts (consensus at 186%) against 187% at the end of 2018.
Oddo reiterates its Neutral rating on the share. Analysts believe that it has a limited upside potential relative to its target price of 20 euros, while other shares in the insurance sector offer higher upside potential.
Copyright (c) 2019 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.
Oddo expects a slight increase in premiums to 8,754 million euros (+1.7%), with an expected decline in France (-0.8% e). The broker is looking for a 7.3% increase in international premium growth, particularly driven by organic growth in Brazil.
The group's revenues are expected to rise by 2.5%, with insurance and proprietary revenue rising, This growth in revenue, combined with sound cost control should enable CNP Assurances to report a 3.7% increase in its gross operating income, with its bottom line up 5.4%, Oddo says.
The broker also says that the fall in interest rates that occurred over the first quarter should result in a decline in the group's solvency margin to 184% according to its forecasts (consensus at 186%) against 187% at the end of 2018.
Oddo reiterates its Neutral rating on the share. Analysts believe that it has a limited upside potential relative to its target price of 20 euros, while other shares in the insurance sector offer higher upside potential.
Copyright (c) 2019 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.