Macquarie has updated its thoughts and modeling for QBE Insurance Group. One of the key highlights is the broker feels without a permanent CEO for the Group and Australia Pacific division, the insurer is moving into FY21 with rebasing risk – an idea also entertained elsewhere.
Macquarie analysts do not expect FY21 guidance and forecast only a 4c dividend in 2H20, given the magnitude of statutory losses. The broker cuts its price target to $7.70 from $8 on further reduction in forecasts. Underperform.
Target price is $7.70.Current Price is $8.47. Difference: ($0.77) – (brackets indicate current price is over target). If QBE meets the Macquarie target it will return approximately -10% (excluding dividends, fees and charges – negative figures indicate an expected loss).