(News Bulletin 247) – RBC announced on Wednesday that it had lowered its target price on Scor, from 32 to 29 euros, while renewing its ‘outperformance’ opinion on the title.
In a study devoted to the European reinsurance sector, the Canadian broker explains that he considers that the action of the French group remains ‘cheap’ following the announcement of a change of general manager.
This decision leaves the operational recovery and the strategic plan in plan, he explains, until the next assumption of functions of the new leader.
Beyond this element, the broker believes that a simple improvement in the combined ratio in damage reinsurance could allow a revaluation of the share price.
With a PER of 4.6x by 2024, against an average of 9x for the sector, the Scor share is trading at historic lows, RBC argues, for a dividend yield of 8%.
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