Tryg A/S, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Daniel Wilson-Omordia from Morgan Stanley maintained a Hold rating on the stock and has a DKK165.00 price target.
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Daniel Wilson-Omordia has given his Hold rating due to a combination of factors observed in Tryg A/S’s recent performance. The company’s third-quarter results showed positive momentum, with operating earnings per share exceeding expectations primarily due to favorable large losses and reserve releases, rather than fundamental improvements. While there was a notable improvement in the underlying underwriting margins in the Private/Norway segment, the overall insurance revenue growth was consistent with recent trends, indicating stability rather than significant acceleration.
Additionally, Tryg’s combined ratio was slightly better than consensus, driven by lower-than-expected large claims and run-off, although this was partially offset by higher weather-related claims. The company’s strategic move to reduce its real estate portfolio aligns with its long-term plans and positively impacts its capital position, though it may lead to future investment result downgrades. These factors collectively suggest that while Tryg is making progress, the improvements are not substantial enough to warrant a more bullish outlook, thus supporting the Hold rating.
In another report released on September 29, Jefferies also downgraded the stock to a Hold with a DKK169.00 price target.