Munich Re price target lowered to EUR629 by Berenberg on revenue guidance cut

Published 12/08/2025, 12:52
Munich Re price target lowered to EUR629 by Berenberg on revenue guidance cut

Investing.com - Berenberg has lowered its price target on Munich Re (ETR:MUV2) (OTC:MURGY) to EUR629.00 from EUR641.00 while maintaining a Hold rating following the company’s Q2 2025 earnings report. According to InvestingPro analysis, the stock currently appears undervalued, with a P/E ratio of 14.25x and impressive returns of 40% over the past year.

Munich Re reported Q2 2025 net profit of EUR2,085 million on August 8, aligning with the EUR2.1 billion pre-reported on July 21. This represents a significant recovery from Q1 2025’s relatively low EUR1.1 billion net profit, primarily due to the absence of large claims in the Property & Casualty Reinsurance unit during the second quarter.

Despite maintaining its full-year 2025 net profit target of EUR6 billion, Munich Re reduced its guidance for FY 2025 reinsurance business revenue from EUR42 billion to EUR40 billion. This reinsurance business encompasses Property & Casualty Reinsurance, Life Reinsurance, and global special insurance operations.

The stock fell 6.8% following the Q2 results announcement and the lowered revenue guidance. Berenberg characterized this share price correction as "overdone" despite maintaining its Hold rating on the stock.

Berenberg noted that the current downturn in the reinsurance cycle is "relatively moderate" and expressed confidence that Munich Re’s earnings power "remains very strong" due to the company’s increased diversification.

In other recent news, Munich Re has seen its stock rating upgraded by JPMorgan. The investment bank elevated the company’s rating from Neutral to Overweight, signaling a positive outlook on Munich Re’s capital return prospects. This change comes with a significant increase in the price target, moving from EUR530.00 to EUR650.00. Despite a softening reinsurance market, JPMorgan analyst Kamran Hossain expressed confidence in the company’s ongoing potential. This upgrade reflects a favorable view of Munich Re’s financial strategies and future performance. Investors may find this development noteworthy as it suggests an optimistic assessment from a major financial institution.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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