Munich Re: shares fall after downgrade

(CercleFinance.com) - Munich Re shares have fallen by up to 1.
8% on Monday after analysts at Jefferies downgraded the stock to "underperform" from "hold," citing a potential "reversal."

While few natural catastrophes, high reserve releases and plenty of capital gains have set up an "ideal" second-quarter, the broker noted that Munich Re's financial grounding and earnings outlook still leaves "a lot to be desired," with pressure building from low yields.

Thus, although Jefferies has increased its 2019 EPS estimates by 10%, it has cuts its earnings estimates for 2020 and 2021 by 11% and 15% respectively, and has reduced its target price from 208 euros to 193 euros.

Munich Re shares were trading down 1.1% at 223.4 euros in afternoon trading on the Frankfurt Stock Exchange after earlier falling to 221.8 euros.

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