Sampo nears non-life refocus, but is fairly valued - Jefferies starts at 'hold'

Topdanmark A/S

21/12/2022 10:03

** Jefferies starts coverage of Sampo  SAMPO.HE  with "hold"
rating and target price of EUR 51 euros, seeing the Finnish
insurer as fairly valued
    ** "After years of reshuffling the group's structure to
refocus on non-life, the end may be in sight for Sampo," it
says, adding the market has already reflected the benefit of
"the Sampo shuffle"
    ** Sampo's depressed dividend yield implies that the shares
are expensive, but, according to the broker, all indicators
point to a fair valuation 
    ** Sampo disposing of both the life business and private
equity portfolio will be more incremental than transformational,
it says   
    ** The largest potential catalyst, acquiring Denmark's
Topdanmark  TOP.CO , where Sampo owns a 48% stake, appears
unlikely to occur in the near term, the brokerage says 
    ** Although the acquisition makes strategic sense, it's
difficult to see how a deal could be executed without Sampo
overpaying, Jefferies says
    ** Out of 18 analysts that cover Sampo, eight rate it
"strong buy" or "buy", eight rate it "hold" and two rate it
"sell"
 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))