(CercleFinance.com) – Scor gained more than 2% in Paris, benefiting in particular from an analysis by Morgan Stanley, which initiated coverage of the stock on Tuesday with an ‘overweight’ recommendation and a price target of 38 euros in the context of a note dedicated to the European insurance sector.
In his study, the intermediary considers that the action of the reinsurer is similar to a ‘value’ security (discounted) likely to benefit from a revaluation, in particular in the event of clarification of the losses suffered by the life branch following the Covid epidemic.
The analyst points out that lower volatility in terms of losses linked to natural disasters as well as better visibility on the deployment of capital could also favor a revaluation of the stock.
Morgan Stanley points out that the stock is trading at 7.6x earnings forecasts for 2023, a valuation level which it believes reflects a particularly high cost of equity, which could nevertheless be expected to settle this year.
In addition, SCOR Investment Partners, the portfolio management company of the SCOR group, announces that its management activity on the collateralised reinsurance market, commonly known as Insurance-Linked Securities (‘ILS’) exceeded 3 billion dollars in assets, thus placing itself ‘among the 15 most important managers on the ILS market.’
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