TMC shares dip as Iceberg Research rebuts Ives upgrade
Investing.com -- Barclays (LON:BARC) has issued updated assessments for Hiscox (LON:HSX) and Frasers Group, reflecting diverging outlooks on the companies’ growth trajectories and strategic execution.
The brokerage upgraded Hiscox to “overweight” from “equal weight,” raising the price target to GBp1,400 from GBp1,180, representing a 19% increase.
The revision stems from renewed confidence in Hiscox’s Retail segment, which is undergoing a strategic overhaul aimed at driving accelerated growth and improved profitability.
Barclays projects an 8–22% rise in Hiscox’s EPS between 2026 and 2028. This growth is expected to be fueled by the company’s new Retail strategy, which targets 5–15% top-line growth and an undiscounted combined ratio between 89–94%.
Additionally, the Retail business is expected to deliver a U.S.$200 million profit and loss benefit by 2028.
Barclays anticipates that the Retail segment will account for 60% of Hiscox’s total pre-tax profit by 2028, a significant jump from 47% in 2024.
As of June 18, Hiscox shares were trading at GBp1,274, offering a 9.9% upside to the revised target.
In contrast, Barclays reinstated coverage of Frasers Group at “equal weight,” maintaining its price target at GBp760.
The reinstatement follows a temporary research restriction, with estimates and valuation metrics unchanged from the pre-restriction period.
According to Barclays, Frasers Group’s “elevation strategy” has strengthened its brand partnerships and product offerings, improving its standing with global suppliers.
The group also retains a strong foothold in the U.K. retail market and is pushing forward with international expansion plans.
As of June 18, 2025, Frasers shares were priced at GBp683, implying a potential upside of 11.3% to the target.
However, Barclays indicates that further evidence of operational synergies, particularly from its portfolio of financial investments, will be required before any re-rating of the stock is warranted.