🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

Munich Re stock downgraded as analyst points to lower-than-expected Q3 profit due to natural catastrophes

EditorAhmed Abdulazez Abdulkadir
Published 10/26/2024, 11:36 PM
MUVGn
-

On Friday, Munich Re (MUV2:GR) (OTC: MURGY (OTC:MURGY)) experienced a change in stock rating as Berenberg downgraded the company's shares from Buy to Hold, setting a price target of EUR525.00. The revision followed the company's announcement of a profit warning for Q3 2024. Munich Re reported a pre-tax net profit of EUR0.9 billion, which fell short of the consensus expectations by EUR0.5 billion, with the anticipated profit being EUR1.4 billion.

The management attributed the lower-than-expected profits to a series of significant natural disasters that occurred within the quarter. Despite Munich Re's strong performance over the past 24 months, the current situation has led to a reassessment of the stock's potential for growth.

The analyst from Berenberg pointed to the company's robust track record but noted the limited upside now apparent due to these recent events. The downgrade was also influenced by Munich Re's diversified business model, which, according to the analyst, does not benefit as much from the ongoing strong reinsurance market compared to its peers. This nuanced view of the company's position in the market has prompted a more conservative outlook on the stock.

The new price target suggests a recalibration of expectations for Munich Re's stock value in light of the Q3 profit warning and the company's current market position. The downgrade serves as a signal to investors that the stock may not offer the same growth potential as previously anticipated, given the recent challenges and market dynamics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.