Morgan Stanley starts Talanx with 'equal-weight', seeing little upside
19/10/2023 08:09
** Morgan Stanley initiates coverage of German insurer
Talanx TLXGn.DE , seeing little upside for the company in spite
of structural improvements in the primary business and exposure
to the strong reinsurance hard market
** MS sees Talanx to have proven to be more than its
subsidiary Hannover Re HNRGn.DE , noting that the German
company is the only large European multi-liner with significant
earnings contributions from reinsurance (~50%)
** It highlights the firm's structural improvements in
industrial lines, with the retail business having upside as well
** Morgan Stanley notes that the stock has been the best
performer YTD (+48%) in its sector, while seeing a few
offsetting factors, such as its limited free float
** "Additionally, the Industrial Lines improvement was
through the hard commercial pricing environment, which we
believe is waning, so we see little room for margin expansion
from here." the broker writes
** Out of 7 analysts that cover Talanx AG, two rate the
stock "strong buy" or "buy", three rate "hold" and two rate
the stock "strong sell" or "sell"
(Reporting by Tristan Veyet)
((Tristan.chabba@thomsonreuters.com))