Goldman Sachs is out with its near-term forex outlook
Investing.com -- Barclays (LON:BARC) has issued updated assessments for Hiscox (LON:HSX) and Frasers Group (LON:FRAS), reflecting diverging outlooks on the companies’ growth trajectories and strategic execution.
The brokerage upgraded Hiscox to “overweight” from “equal weight,” raising the price target to GBp1,400 from GBp1,180, representing a 19% increase.
The revision stems from renewed confidence in Hiscox’s Retail segment, which is undergoing a strategic overhaul aimed at driving accelerated growth and improved profitability.
Barclays projects an 8–22% rise in Hiscox’s EPS between 2026 and 2028. This growth is expected to be fueled by the company’s new Retail strategy, which targets 5–15% top-line growth and an undiscounted combined ratio between 89–94%.
Additionally, the Retail business is expected to deliver a U.S.$200 million profit and loss benefit by 2028.
Barclays anticipates that the Retail segment will account for 60% of Hiscox’s total pre-tax profit by 2028, a significant jump from 47% in 2024.
As of June 18, Hiscox shares were trading at GBp1,274, offering a 9.9% upside to the revised target.
In contrast, Barclays reinstated coverage of Frasers Group at “equal weight,” maintaining its price target at GBp760.
The reinstatement follows a temporary research restriction, with estimates and valuation metrics unchanged from the pre-restriction period.
According to Barclays, Frasers Group’s “elevation strategy” has strengthened its brand partnerships and product offerings, improving its standing with global suppliers.
The group also retains a strong foothold in the U.K. retail market and is pushing forward with international expansion plans.
As of June 18, 2025, Frasers shares were priced at GBp683, implying a potential upside of 11.3% to the target.
However, Barclays indicates that further evidence of operational synergies, particularly from its portfolio of financial investments, will be required before any re-rating of the stock is warranted.