Ann: Market release on QBE's FY20 Results, page-6

FROM THE AFR

UBS, Macquarie, Citi and Goldman Sachs all increased their price target on the insurer, driving its shares higher.UBS upgraded QBE from neutral to buy, saying the COVID earnings hit and negative news were all now captured in the share price.

“With the earnings downside now largely captured in recent updates we consider the share price now skewed to the upside,” said UBS analyst Andrew Adams.“QBE has upside leverage to a strong premium rate environment and margin expansion from a low base, hence leverage is greater than many global peers.”

Macquarie also said the outlook appeared positive, lifting its target price from $7.70 to $9.40 and upgrading the stock from underperform to neutral.“Although no official FY21 guidance was provided, the outlook for margins, premium rates and now FX are all positive and should provide support for the stock until a new group CEO is appointed,” said Macquarie analyst Andrew Buncombe.

Citi held its buy rating on the stock and increased its target price from $10.40 to $10.95 while Goldman Sachs also held its buy rating on the stock and raised its price target from $10.24 to $10.73.Morgan Stanley held its overweight rating and increase its price target from $10.30 to $11.00.