Generali’s quarterly does not warm the hearts of analysts and neither do the prices. The share, also due to a market still in correction, remained unchanged at 17 euro. Why so much coldness considering the operating result rose from 1.5 billion to 1.8 billion? The reason is to be found in the growth of net profit which rose by 50% to 1,820 million. A glittering result which, however, does not dazzle the market. As Websim analysts point out, the result was conditioned by a marked incidence of extraordinary capital gains. It is no coincidence that the judgment remains Neutral with a target price of 18.50 euros.
To this we must add the flood effect. Also in this case Borean tries to circumscribe the critical issues; “Should there be no further deterioration, also thanks to our reinsurance policies, we can hope not to exceed 100 million impacts” the financial director clarified, underlining the commitment of the group which has taken steps “to get closer to the population in difficulty, starting for example with the suspension of the payment of premiums”.
It must be said that the coldness of the analysts is rather widespread despite the insistent satisfaction shown by the financial director Cristiano Borean. “Thanks to the strong and profitable growth in quarterly results, Generali confirms itself in line to successfully achieve the objectives of the strategy ‘Lifetime Partners 24: Driving Growth’”. The market, however, does not show the same enthusiasm. It is no coincidence that Hold or Neutral judgments flock and the target prices remain unchanged.
Here are the opinions of the main investment houses.
AKROS
confirms the accumulated recommendation on the stock, with TP at €20.5 after the first quarter accounts “strong and consistent with the plan” and with its expectations.
MORGAN STANLEY
Quarterly data looks “strong,” analysts comment Morgan Stanley (Underweight, TP at €18). Experts point out that the profit is far beyond our expectations.
KEPLER CHEVREUX
Confirm the recommendation BUY e il TP a 22 €. The quarterly accounts showed an operating profit of 3% higher than the expectations of analysts, who cite the strong result of Life.
CITI
Confirm the HOLD recommendation and the TP at €18.8. The quarterly numbers “look good to us, with a first quarter in general stronger than expected at an operating level in both Life and Non-Life”, the analysts explain.
JP MORGAN
Confirm the Neutral recommendation and the TP at €20. Analysts’ quarterly results were “solid,” with an operating result 31% above their expectations.