Fidelity Wise Origin Bitcoin Fund amends trust agreement to allow in-kind share transactions
On Monday, Scor (EPA:SCOR) SE shares faced a revision in their market outlook as UBS analyst Will Hardcastle downgraded the stock from Buy to Neutral. The new price target set by UBS for Scor SE is EUR28.70. The $5.36 billion market cap reinsurer has shown strong momentum with a 32.77% return over the past six months, according to InvestingPro data. The downgrade was influenced by the assessment that the dividend yield will likely act as a limiting factor for the stock’s potential growth.
Hardcastle pointed out that despite the low payout, Scor SE’s current projected dividend yield for 2025, estimated at 7.2%, does not offer a sufficient premium compared to some of its reinsurance peers, which undermines the justification for a Buy rating. InvestingPro data shows the company’s current dividend yield stands at 4.75%, with a healthy current ratio of 3.97 indicating strong liquidity. The analysis identified three main factors that are expected to restrict the company’s ability to increase its payout ratio in the medium term.
The revised rating reflects a change in UBS’s perspective on Scor SE’s stock, suggesting a more cautious stance on the company’s future performance in the market. The analyst’s comments indicate a belief that the dividends Scor SE is expected to offer will not be enough to attract investors looking for higher yields.
Scor SE, a global reinsurance company, has been evaluated against its industry peers, and the conclusion has led to this adjustment in expectations. The company’s stock will continue to be monitored in light of these identified constraints and the potential impacts on its market valuation.
Investors holding Scor SE stock will be considering this new analysis from UBS as they make decisions about their positions in the reinsurance company. The forecasted dividend yield and the comparison to competitors form the basis of UBS’s neutral stance on Scor SE shares. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued, with additional ProTips and extensive financial metrics available to subscribers seeking deeper insights into the company’s fundamentals and growth prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.