Admiral Group (ADM)

Sector:

Insurance

Index:

FTSE 100

2,286.00p
   
  • Change Today:
    -10.00p
  • 52 Week High: 2,508.00
  • 52 Week Low: 1,887.00
  • Currency: UK Pounds
  • Shares Issued: 294.04m
  • Volume: 422,506
  • Market Cap: £6,722m
  • RiskGrade: 186

Morgan Stanley ups Hastings to 'overweight'

By Michele Maatouk

Date: Friday 07 Feb 2020

LONDON (ShareCast) - (Sharecast News) - Morgan Stanley bumped up its rating on insurer Hastings on Friday as it took a look at the UK motor insurance market.
The bank noted that investors have largely avoided the UK motor insurers where possible. Pricing remained soft throughout 2019, it noted, while claims inflation increased to about 5-8% for different players under its coverage.

As a result, Hastings underperformed the European Insurance sector by more than 25 percentage points since the start of 2019. The tough backdrop caused earnings and earnings estimates to fall and ultimately resulted in an announced dividend cut last month, it said.

MS lifted Hastings to 'overweight' from 'equalweight' and upped the price target to 220p from 180p.

"Hastings is trading at 10.1x2021 earnings versus Admiral and Direct Line at 18.1x and 12.1x respectively," it said, adding that its price comparison website pricing advantages will allow it to take market share over the long term.

"However, if the UK motor market does start to harden, liquidity constraints could mean that the shares move before investors are able to build a position," MS said, acknowledging that the upgrade may be early and there may be bumps in the road.

MS said there could be limited benefits from management actions on the 2020 loss ratio and the UK motor market could remain soft for longer than expected.

"Hastings reports FY19 results on 27th February, but we don't expect too much of a surprise for 2019 given the new guidance in January."

The bank lifted its price target on Direct Line to 350p from 330p and on Admiral to 2,100p from 1,900p. It rates both at 'equalweight'.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Admiral Market Data

Currency UK Pounds
Share Price 2,286.00p
Change Today -10.00p
% Change -0.44 %
52 Week High 2,508.00
52 Week Low 1,887.00
Volume 422,506
Shares Issued 294.04m
Market Cap £6,722m
RiskGrade 186

Admiral Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
68.89% below the market average68.89% below the market average68.89% below the market average68.89% below the market average68.89% below the market average
83.33% below the sector average83.33% below the sector average83.33% below the sector average83.33% below the sector average83.33% below the sector average
Price Trend
80.44% above the market average80.44% above the market average80.44% above the market average80.44% above the market average80.44% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Income
59.43% above the market average59.43% above the market average59.43% above the market average59.43% above the market average59.43% above the market average
45.45% below the sector average45.45% below the sector average45.45% below the sector average45.45% below the sector average45.45% below the sector average
Growth
53.43% above the market average53.43% above the market average53.43% above the market average53.43% above the market average53.43% above the market average
50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average

What The Brokers Say

Strong Buy 1
Buy 1
Neutral 10
Sell 1
Strong Sell 3
Total 16
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Admiral Dividends

  Latest Previous
  Final Special
Ex-Div 07-May-20 n/a
Paid 01-Jun-20 n/a
Amount 56.30p 0.000p

Trades for 22-May-2020

Time Volume / Share Price
16:38 41 @ 2,286.00p
16:35 163,005 @ 2,286.00p
16:29 81 @ 2,280.00p
16:29 150 @ 2,281.00p
16:29 150 @ 2,282.00p

Admiral Key Personnel

CEO David Stevens
Chair Annette Court
CFO Geraint Jones

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