On Thursday, Deutsche Bank (ETR:DBKGn) adjusted its stance on Coface SA (EPA:COFA:FP) stock, moving the rating from Buy to Hold, and decreasing the price target to EUR15.00 from the previous EUR16.00. This decision reflects a response to anticipated market uncertainties, specifically following the re-election of President Trump in early November.
The analyst from Deutsche Bank highlighted the mixed outlook for the credit insurance company, citing "short-term uncertainty and long-term quality" as key factors in their reassessment. The potential for new tariffs on Chinese goods and other imports under the Trump administration was mentioned as a source of concern for the year 2025, suggesting a more volatile environment for Coface.
Despite recognizing the inherent potential of Coface, the analyst suggested that there might be more attractive investment opportunities within the insurance sector, given the current circumstances. This perspective is influenced by the potential policy changes that could impact international trade and, by extension, credit insurance operations.
Coface's current financial metrics were noted, with the shares trading at approximately a 10% dividend yield and a 9x price-to-earnings (P/E) ratio for the year 2025. These figures contribute to the rationale behind the downgrade to Hold, as the firm seeks to navigate through the anticipated fluctuations in the global trade landscape.
The revised price target of EUR15.00 represents a circa 6% decrease from the previous target, indicating a more cautious valuation of Coface by Deutsche Bank in light of the described risks and market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.