The broker is positive on the European general (or non-life) insurance sector which Nomura describes as ‘still very special’.
“As expected, the UK non-life names have performed well on a relative basis year to date amid market turbulence,” Nomura analyst Fahad Changazi said in a note.
Commenting specifically on Admiral, Changazi added: “Our two key reasons for upgrading Admiral are exposure to rising UK motor rates and potential to pay out excess capital return above guidance (£300m vs £150-200m guidance).”
Meanwhile, Liberum Capital downgraded Kurdistan oil producer Genel Energy Plc (LON:GENL) to ‘hold’ from ‘buy’. And, also downgraded African airline Fastjet Plc (LON:FJET) to ‘hold’ from ‘buy’ as well.
Hay fever vaccine specialist Allergy Therapeutics PLC’s (LON:AGY) mix of continued commercial traction and breadth of new product opportunities underpins the investment case, according to Panmure Gordon.
A target price of 51p gives strong upside against current levels and a placing in November has given it the firepower to acquire/license additional products. Buy says the broker.