Swiss Re: Oddo BHF upgrades stock
(CercleFinance.com) - Oddo BHF has upgraded its rating on the Swiss Re stock from "neutral" to "buy", having increased its corresponding target price from 88 Swiss francs to 94 Swiss francs, to reflect changes made to the cost of capital applied to such shares.
The broker has increased its outlook despite trimming its corresponding EPS estimates.
Following the Swiss reinsurer's CMD held last Friday, analysts highlight cautious investment management, a solid balance sheet and a secure dividend.
The stock is trading at reasonable multiples (price-to-book ratio of 0.9 times, 2020 yield of 7.3%) and has underperformed since the start of the year (11% relative to its sector and 16% relative to peer Munich Re, the analyst points out.
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