Generali: Jefferies downgrades to 'hold'
(CercleFinance.com) - On Monday Jefferies downgraded its rating on the Generali share from "buy" to "hold," citing a "business mix interruption" at the Italian insurer.
Although the market appeared pleasantly surprised by Generali's 2019 Solvency II ratio of 224%, the news that this had since fallen to 200% by 6 March 2020 was less positive, the broker wrote in a report to clients.
The fall could be a precursor for future declines, Jefferies warned.
The US broker pointed out that recent events have impaired the group's ability to restructure its product mix towards underwriting and fee-based policies, leaving the group over-exposed to spread risk.
Consequently, it has cut its target price from 18 euros to 12 euros.
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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.
Although the market appeared pleasantly surprised by Generali's 2019 Solvency II ratio of 224%, the news that this had since fallen to 200% by 6 March 2020 was less positive, the broker wrote in a report to clients.
The fall could be a precursor for future declines, Jefferies warned.
The US broker pointed out that recent events have impaired the group's ability to restructure its product mix towards underwriting and fee-based policies, leaving the group over-exposed to spread risk.
Consequently, it has cut its target price from 18 euros to 12 euros.
Copyright (c) 2020 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.