RBC raises Munich Re shares target amid positive reinsurance market outlook
On Thursday, RBC Capital adjusted its outlook on Munich Re shares, increasing the price target to €501 from the previous €487, while maintaining a Sector Perform rating. The reassessment comes amid a positive reinsurance market outlook and the company’s robust performance.
Munich Re has been performing well, with all business segments contributing to its success. This has led to heightened expectations among investors, particularly regarding projections for the coming years and the potential impact on capital deployment strategies.
RBC Capital notes that while the current trend is promising, a clearer picture of the “underlying” trend will likely emerge with the full-year 2024 update, which is expected in February 2025.
In light of the strong business performance, RBC Capital has revised its fiscal year 2024 estimates for Munich Re upwards by 3%. However, the firm has decided to keep estimates for the outer years unchanged.
The analyst from RBC Capital highlighted that despite the optimistic outlook, there might be a period of conservative management until the underlying trends become more apparent.
The update from RBC Capital reflects confidence in Munich Re’s current trajectory but also suggests a cautious approach to future expectations. The new price target of €501 represents a modest increase from the previous target but indicates that the analyst sees room for growth based on the company’s recent performance.
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