GS ups Sampo on growth prospects, UK motor trends
BUZZ-GS ups Sampo on growth prospects, UK motor trends ** Goldman Sachs upgrades Finnish insurance group Sampo SAMPO.HE to "buy" from "neutral" citing compounding earnings growth and a turning UK motor pricing cycle
** The broker sees the stock's underperformance versus the broader insurance index this year as an "attractive opportunity"
** It expects Sampo to deliver consistent growth over the strategy period 2027-29, and to reveal an "operationally driven" plan at its investor day in November
** GS sees small and medium-sized enterprises and health insurance as key growth drivers for Sampo in the Nordics
** Topdanmark acquisition offers additional upside through the transfer of digital capabilities to Denmark and the wider deployment of agricultural insurance expertise across the region, it says
** In the UK, higher growth is underpinned by motor insurance price increases and solid volume expansion at its Hastings brand as shopping activity returns, GS says
** The broker raises its price target by 9.3% to €10.6 anticipating a structurally higher return on equity as the firm sells non-core investment assets and deploys capital
** Out of 16 analysts that cover Sampo, 11 rate the stock "strong buy" or "buy", four rate it "hold" and one rates the stock "sell" - data compiled by LSEG
(Reporting by Marta Frackowiak)