ASX-listed QBE Insurance Group Limited (AU:QBE) has received a Strong Buy rating from analysts, making it a favourable option for investors in 2024. QBE also remains an attractive pick for investors looking for dividend income. Based in Australia, QBE is a leading insurance and reinsurance company with global operations across 27 countries.
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In December, the stock hit a low point after severe weather conditions impacted investor sentiment for the country’s insurance stocks. Overall, the company’s share price gained over 10% in trading in 2023.
Let’s take a look at some details.
Analysts Bullish on Earnings Momentum
Analysts remain bullish after the company posted its half-yearly earnings for 2023 and expect the earnings momentum to continue for the rest of the year.
Analyst Julian Braganza from Goldman Sachs expressed optimism over QBE’s half-year results, highlighting that its margins aligned with expectations. He also anticipates QBE to continue this robust performance, fueled by premium hikes and increased volumes. Braganza has a Buy rating on the stock at a price target of AU$18.34, implying a growth of about 25%.
Most recently, Jefferies analyst Simon Fitzgerald reiterated his Buy rating on the stock, predicting an upside of 22%.
A Preferred Dividend Option
The company carries a dividend yield of 2.99%. For the first half of 2023, the company announced an interim dividend of AU$0.14 per share, compared to AU$0.09 paid in the first half of 2022. For the full year 2022, the company paid a total dividend of AU$0.39 per share.
According to Australia-based brokerage firm Morgans, the total dividend for FY23 is expected to increase to AU$0.96 and to AU$1.37 in FY24. Analyst Richard Coles from Morgans has a Buy rating on the stock.
QBE Share Price Prediction
According to TipRanks’ consensus forecast, QBE stock has a Strong Buy rating based on seven Buys and one Hold recommendation. The QBE share price target is AU$17.75, which is 20.5% above the current trading level.
