🧠 Watchlist Winners: Copy Legendary Investors' Portfolios in One ClickCOPY FOR FREE

Direct Line upgraded to 'buy' as restructuring benefits underappreciated, says Citi

Published 28/08/2024, 14:11
© Reuters.  Direct Line upgraded to 'buy' as restructuring benefits underappreciated, says Citi
DLGD
-

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.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.