Gold prices steady ahead of Fed decision; weekly weakness noted
Barclays (LON:BARC) downgraded Swiss Re (OTC:SSREY) stock rating to Underweight from Equalweight on Thursday, citing valuation concerns after recent share price appreciation.
The downgrade was accompanied by a price target reduction to CHF128.00 from CHF136.00 for the Swiss reinsurance company, which trades on the Swiss exchange as SREN:SW.
Barclays noted that Swiss Re stock has re-rated to 10.5 times 2026 estimated price-to-earnings ratio, representing a 22% premium above its five-year average. This re-rating resulted from improved risk controls on natural catastrophe exposure, better reserving practices, and increased balance sheet strength.
The firm also pointed to increased investor confidence in management targets as a factor in the stock’s recent performance. Swiss Re currently appears as "the most expensive versus history among peers," according to Barclays’ analysis.
Barclays believes the current valuation reflects low Swiss interest rates rather than fundamentals that are "not yet best in class," specifically citing concerns about reserve buffers and Life & Health Reinsurance performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.