Generali: Oddo confirms its recommendation
(CercleFinance.com) - Generali has announced the acquisition of the Portuguese Seguradoras Unidas and service company AdvanceCare.
These transactions entail an amount of 510 million euros for Seguradoras Unidas and 90 million euros for AdvanceCare.
The group now becomes the second largest non-life insurer in Portugal with a market share of 18.7%. “These acquisitions are an important step in the implementation of the group's strategy, which aims to strengthen our leadership in Europe”.
Oddo considers that this transaction is coherent with the group's strategy. According to the analysts' firm, the impact on Generali's solvency is limited (estimating it at -3.5 points). In the wake of this transaction, Oddo confirms its 'buy' rating on the share and its target price of 17.80 euros.
It says that the group benefits from a favourable operational dynamic and significant cash-flow generation which allows it to distribute an attractive dividend, whilst deleveraging and maintaining a capacity to self-finance its external growth operations, as this operation shows.
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.
These transactions entail an amount of 510 million euros for Seguradoras Unidas and 90 million euros for AdvanceCare.
The group now becomes the second largest non-life insurer in Portugal with a market share of 18.7%. “These acquisitions are an important step in the implementation of the group's strategy, which aims to strengthen our leadership in Europe”.
Oddo considers that this transaction is coherent with the group's strategy. According to the analysts' firm, the impact on Generali's solvency is limited (estimating it at -3.5 points). In the wake of this transaction, Oddo confirms its 'buy' rating on the share and its target price of 17.80 euros.
It says that the group benefits from a favourable operational dynamic and significant cash-flow generation which allows it to distribute an attractive dividend, whilst deleveraging and maintaining a capacity to self-finance its external growth operations, as this operation shows.
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.