Reporting Season Road Map: 18 February 2020
About the author:
- Author name:
- By Andrew Tang
- Job title:
- Analyst - Equity Strategy
- Date posted:
- 18 February 2020, 10:57 AM
- Sectors Covered:
- Equity Strategy and Quant
Following our assessment of results and market announcements, here is our one top picks for today (Tuesday 18 February 2020):
QBE Insurance Group (QBE) – Turn around continues
QBE's FY19 result had been heavily pre-released. Its FY19 reported NPAT (US$550m) was largely in-line with consensus. Overall, we think the positive underlying trends in this result, like attritional claims ratio improvement and rate increases, well outweighed the negatives. We lift our QBE FY20F/FY21F cash NPAT by ~1%-8%. Our PT rises. After the share price appreciation into year end, we took QBE off an ADD recommendation. However, we believe the positive trendline in this result, particularly rate rises, points to an upgrade cycle likely having further to run. On that basis, we switch back to an ADD recommendation. We lift our FY20F/FY21F cash NPAT by ~1%-8%.
We re-upgrade to an Add rating once again. Morgans clients can login to view our share price target and detailed research note.
Morgans clients can access our further analysis in our latest reports on QBE Insurance Group. Alternatively, please contact your nearest Morgans office for access.
Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.
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