Broker Recommendations
RBC Capital cuts Beazley price target after results
By Michele Maatouk
Date: Thursday 14 Aug 2025
(Sharecast News) - RBC Capital Markets cut its price target on Beazley on Thursday to 1,000p from 1,125p on lower forecasts, following the company's first-half results a day earlier.
"The impact of 2% more caution on the combined ratio and 2% lower annual top-line growth gives low teen underlying cuts to outyear earnings, reflecting the high operational gearing as competition increases and margins normalise," RBC said.
"M&A could underpin organic growth that is becoming harder to achieve, potentially at a marginal cost to tangible NAV.
"Strong starting solvency underpins an unchanged view of $500m annual buybacks for total capital return of 11% on a 12-month view, which should provide good support to the shares."
The bank said its price target was being reduced with lower forecasts, equating to 1.65x book for 17.5% average adjusted return on equity.
On Wednesday, Beazley posted a drop in first-half profit and cut its full-year premium growth guidance to low to mid-single digit, from mid-single digits in April.
RBC Capital maintained its 'outperform' rating on the stock.
Article Archive
Free Membership To Digital Look
Discover the full range of Investor's Tools and Services from Digital Look - voted 'Best Research & Information Provider 2007' by Investors Chronicle.
En HeaderFooterDLYou are here: research