QBE - QBE INSURANCE GROUP LIMITEDBA-Merrill Lynch rates QBE as...

QBE - QBE INSURANCE GROUP LIMITED
BA-Merrill Lynch rates QBE as Neutral (3) - The broker considers US crop exposures are a relatively bright area for QBE in the second half of 2013. Crop is likely to account for 28% of US and 10% of group-wide premiums and the insurer is actively trying to grow the crop business.
The growing conditions in 2013 have been better than 2012 in the US as a lower proportion of the country is experiencing drought. Regulatory risk continues, particularly with the US budget under pressure, but slow progress in negotiations on the farm bill means a further extension to the current law, and business as usual for QBE.

The Neutral rating and $16.00 target are retained.

Target price is $16.00 Current Price is $14.29 Difference: $1.71 If QBE meets the BA-Merrill Lynch target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in December. BA-Merrill Lynch forecasts a full year FY13 dividend of 50.36 cents and EPS of 101.23 cents . At the last closing share price the estimated dividend yield is 3.52%.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.12.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values. Market Sentiment: 0.1

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 98.6, implying annual growth of 60.1%.Current consensus DPS estimate is 51.8, implying a prospective dividend yield of 3.6%.Current consensus price target is $ 16.16, suggesting upside of 13.1%(ex-dividends).Current consensus EPS estimate suggests the PER is 14.5.