Citi upgrades Direct Line to ‘buy’
Direct Line Insurance Group
179.00p
16:35 13/09/24
1.19%
2.10p
Citi upgraded Direct Line Insurance on Wednesday to ’buy’ from ‘neutral’ and lifted the price target to 223p from 208p.
FTSE 250
20,895.37
16:44 13/09/24
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n/a
FTSE 350
4,566.32
16:44 13/09/24
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FTSE All-Share
4,522.48
17:00 13/09/24
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Insurance (non-life)
3,885.67
16:44 13/09/24
0.79%
30.30
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.