IAG – UBS rates the stock as Upgrade to Buy from Neutral

General insurer share prices have underperformed, UBS observes, with average 2020 price declines of -30% in the year to date.

The broker attributes this to de-risked investment exposures, lower running yields and an overhang of claims risk.

Rating is upgraded to Buy from Neutral and the target is reduced to $6.45 from $6.55.

Sector: Insurance.

Target price is $6.45.Current Price is $5.59. Difference: $0.86 – (brackets indicate current price is over target). If IAG meets the UBS target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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