Citi upgrades Direct Line to ‘buy’
Direct Line Insurance Group
230.60p
17:15 03/12/24
-0.60%
-1.40p
Citi upgraded Direct Line Insurance on Wednesday to ’buy’ from ‘neutral’ and lifted the price target to 223p from 208p.
FTSE 250
20,892.74
16:59 03/12/24
n/a
n/a
FTSE 350
4,607.59
16:59 03/12/24
n/a
n/a
FTSE All-Share
4,562.54
17:14 03/12/24
n/a
n/a
Insurance (non-life)
3,838.84
16:59 03/12/24
0.00%
0.03
The bank said it doesn’t agree with the recent selloff in the share price, which is down around 12% since the end of May.
"We are more constructive as we see favourable underlying motor trends (UK Motor claims picture continuing to improve), significant contribution from non-motor which means that Motor NIM does not have to reach 13% to hit the group target and more confidence in restructuring given the extent of people change," it said.
Citi said it was increasing its 2026 earnings per share estimate by 12% and is around 14% ahead of 2026 consensus pre-tax profit forecasts.
At 1040 BST, the shares were up 1.5% at 189.40p.