'Quality at a discount': Jefferies double upgrades Gjensidige

Gjensidige Forsikring ASA

13/04/2023 09:46

** Jefferies double upgrades Gjensidige  GJFG.OL  to "buy"
from "underperform" as the Norwegian insurer trades at a
four-year low while remaining "the most well-diversified
non-life insurer" in the Nordics
    ** "With Gjensidige's shares trading near an all-time high
discount to peers and at a deep discount to its historical
average P/E multiple, we believe that this is the ideal entry
point into the shares," the brokerage says
    ** While the shares have underperformed the market over the
past year, Jefferies highlights the company's track record of
outperformance and expects growth in earnings and dividends
    ** It adds the insurer has managed inflation via supplier
agreements structured to delay impact of parts inflation, with
contracts renewed before the start of the war in Ukraine and
surging inflation
    ** Out of 16 analysts that cover Gjensidige, seven rate the
stock "strong buy" or "buy", five "hold", and four "sell" or
"strong sell"
    ** Shares in Gjensidige are up 3.1% at 0845 GMT

 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))