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Investing.com - Goldman Sachs has initiated coverage on FWD Group Holdings (HK:1828) with a Buy rating and a price target of HK$44.00, implying a potential 15% upside.
FWD Group is characterized as an emerging pan-Asia life insurer headquartered in Hong Kong, with operations spanning ten markets across Asia and a strategic focus on rapidly growing Southeast Asian markets.
Goldman Sachs notes that FWD’s smaller scale compared to leading regional life insurers positions it advantageously to deliver faster embedded value (EV) growth, despite experiencing negative EV growth since 2020 due to adverse operating trends and market movements.
Following the tightening of operating assumptions in 2023/24, Goldman Sachs believes FWD’s EV growth is at an inflection point, with expectations for improvement in the coming years.
The investment bank projects FWD will achieve an average return on embedded value (ROEV) of 14.3% during 2025-27, compared to -5.4% in 2022-24, primarily driven by improvements in operating and economic variances.
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