Citi downgrades Gjensidige, says 2025 margin consensus is too optimistic

Gjensidige Forsikring ASA

04/10/2024 13:30

** Citigroup cuts Norwegian insurer Gjensidige  GJFG.OL  to
"sell" from "neutral" saying the market's expectations for 2025
margin improvement seem too optimistic
    ** It says the about 3.9 pct point improvement in underlying
frequency loss ratio (ULFR) implied by the consensus for 2025 is
optimistic given the lack on margin inflection and still rising
claims frequency
    ** It puts the stock on a negative catalyst watch into Q3
results, seeing weaker ULFR progression and continued higher
claims in the quarter
    ** Citi cuts PT by 6% to NOK 173.10, vs Thursday's closing
price of NOK 193.60, and says the stock's recent re-rating is
"unjustified"
    ** Out of 16 analysts that cover Gjensidige, eight rate it
"strong buy" or "buy", ​two "hold", and six "strong sell" or
"sell"

 (Reporting by Elviira Luoma)
 ((Elviira.luoma@thomsonreuters.com))