This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
Shares back at key support level. Brokerage Interactive investor (2 May) says strong dividend yield and brand offsets disappointing cold weather budget. FY guidance was reiterated. Insurance sector tends to be supported by high dividend yields and stable returns. Bad weather should be out of the way for rest of the year. Higher bond yields tend to be good for insurers.
Broker consensus is bullish with 53% of analysts saying Buy and only 10% saying Sell. A significant 93% of analyst targets suggests upside from current levels. The median target of 407p is in-line with last August’s peak, well above our short-term trade objective of revisiting the April/May 378p highs. Recent broker updates are even more bullish with targets from 420-510p. A share price bounce could encourage upgrades to help the shares further.
Next Event: Q2 Results: 1 Aug; Ex-div 9 Aug
Latest Broker 12-Month Consensus: 53% Buy, 37% Hold, 10% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | -2.6 | -4.7 | -8.2 | -2.5 | 0.2 | -5.7 | -7.2 | 22.4 | 50.4 |
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