Proactive Investors - Direct Line Insurance Group PLC (LON:DLGD) has been upgraded to buy by US group Citi with the target price being raised to 223p irrespective of the motor insurance pricing cycle.
Shares are down 12% since the end of May but Citi sees the underlying motor trends as favourable with UK Motor claims improving, but the US bank sees a big contribution from non-motor.
Citi also has more confidence in restructuring given the extent of people change and has raised its 2026 EPS estimate by 12% and is now 14% ahead of the 2026 consensus.
Shares rose 0.5% to 187.7p.