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On Monday, Goldman Sachs updated its outlook on Swiss Re (OTC:SSREY) stock, raising the price target to CHF150 from CHF143, while maintaining a Neutral stance on the company’s shares. Swiss Re has experienced a notable increase in its share value, approximately 29%, following a period of reserve strengthening in the third quarter of 2024. The surge in share price is attributed to upward revisions in earnings per share (EPS) projections for 2025 and the adoption of a more conservative approach to reserving.
Analysts at Goldman Sachs have identified 2025 as a pivotal year for Swiss Re, with the company focusing on achieving its net income goal of over $4.4 billion and avoiding significant additional reserve strengthening. The revised price target represents a roughly 5% increase and is based on an applied target multiple of 1.1 times, which is closer to but still below the sector’s price-to-adjusted tangible book value (P/ATBV) versus return on adjusted tangible book value (RoATBV) regression line.
The Goldman Sachs analyst, Andrew Baker, emphasized the alignment of their EPS estimates for Swiss Re from 2025 to 2027 with the consensus data from Visible Alpha. This concurrence suggests a level of confidence in the insurer’s ability to meet market expectations.
Swiss Re’s stock performance has been bolstered by the company’s recent strategic moves, which have been well-received by investors. The firm’s decision to strengthen its reserves more aggressively in the previous quarter has been viewed as a step towards more prudent financial management.
The increase in the price target by Goldman Sachs reflects a modestly more optimistic view of Swiss Re’s valuation, while the Neutral rating indicates that the analysts see the company’s current market performance as fairly valued based on their analysis.
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