Further capital returns unlikely - UBS double downgrades Topdanmark to 'sell'

Tryg A/S

26/01/2023 14:45

** UBS double downgrades Topdanmark  TOP.CO  to "sell" from
"buy," seeing risk reward skewed to the downside for the Danish
insurance company
    ** The brokerage says that "good news in capital has now
been more than priced in" after the company's full year results,
where it proposed a higher-than-expected 2022 dividend
    ** It sees Topdanmark's forward dividend yield as less
attractive than that of peer Tryg  TRYG.CO , and adds that the
company lacks catalysts to generate more capital return going
forward
    ** UBS also sees comparatively lower EPS growth and
potential earnings slowdown for the company, saying this does
not justify it trading at premium versus peers 
    ** Out of nine analysts that cover Topdanmark, one rate it
"buy", six "hold" and two "sell"/"strong sell"
 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))