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On Friday, Citi analysts updated their valuation model for Scor (EPA:SCOR) SE (SCR:FP) (OTC: SCRYY), resulting in an increased price target for the company’s shares. The new price target is set at EUR29.90, up from the previous EUR26.90, while the firm continues to recommend a Buy rating for the stock.
The adjustment comes after Scor SE’s full-year financial results provided greater insight into the company’s future reserve buffering, leading Citi to anticipate a combined ratio (COR) of approximately 86% for the years 2025 to 2027. The analysts expect a normalization of the COR to around 82% for the full year 2024, assuming some favorable conditions.
Citi’s revised estimates reflect a slight flexibility in Scor SE’s financial outlook. The firm’s projections for the company’s earnings per share (EPS) in 2025 and 2027 have been adjusted, with a 3% increase for 2025 and a 1% increase for 2027. However, the 2027 forecast also includes a 3% decrease to account for a more balanced distribution than previously anticipated.
The analysts note that their projections are 12-14% higher than the consensus, which appears to be driven by multiple factors, including investment income and life and health reinsurance (L&H Re) operations. The increased price target of EUR29.90 represents an 11% rise from the prior target and is based on Scor SE’s improving track record and heightened confidence in the company’s ability to deliver on its promises.
The total expected total return (ETR) for Scor SE stock is now at 21%, as per Citi’s analysis. The analysts reiterated their Buy recommendation, signaling continued optimism about the stock’s performance.
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