Scor: leading the SBF 120, with Berenberg's support

(CercleFinance.com) - On Friday, Scor shares posted one of the strongest gains of the SBF 120 index in Paris, boosted by a positive note from Berenberg, which upgraded the stock to buy.


At around 10am, shares in the French reinsurer, which were battered over the summer after a profit warning, were up over 2.7%, outpacing the SBF 120 (+0.6% at the same time).

In its morning comments, Berenberg analysts underpinned their upgrade by (1) the less pronounced than expected severity of the hurricane season, (2) a charge of E500m taken in H1 (deemed technical), and (3) the prospect of a strengthening of the capital "buffer" in Q3 which has just ended.

This last factor, they explain, should consolidate the reinsurer's balance sheet structure and reinforce the scenario of a dividend increase next year.

Berenberg is therefore raising its corresponding target price from E20 to E24, which represents around 20% upside potential.

At current levels, the share is still down around 24% YTD.


Copyright (c) 2024 CercleFinance.com. All rights reserved.