Now it has transpired that reinsurance renewal fees will be less of a burden than feared in 2021, Morgan Stanley analysts -clearly among the bulls when it comes to QBE Insurance- suggest investor attention can now focus on the quality of earnings.
Offsetting the reinsurance positive, the analysts point out the insurer has also decided to put more money aside for potential catastrophe claims.
Morgan Stanley retains an Overweight rating alongside a target of $11.50. Industry view: In-line.
Target price is $11.50.Current Price is $8.52. Difference: $2.98 – (brackets indicate current price is over target). If QBE meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).