ESUR has had its stock rating noted as ‘Reiterates’ with the recommendation being set at ‘OVERWEIGHT’ today by analysts at JP Morgan Cazenove. Esure Group PLC are listed in the Financials sector within UK Main Market. JP Morgan Cazenove have set their target price at 330 GBX on its stock. This indicates the analyst now believes there is a potential upside of 28.8% from the opening price of 256.3 GBX.
Shares in the British internet-based insurance company esure rose by 9% on June 30 as rumours swept the market that private equity companies and overseas trader buyers are considering an offer for the company.
The shares were up by as much as 15% at one stage, but fell back after the company denied that it had received an approach. Nevertheless this did not altogether dampen speculation, with press reports admitting that it was not clear whether an approach had been made.
Specific speculation suggested that the giant global private equity company KKR is pondering a bid, and it is thought that a number of other potential private equity and trade buyers are circling the company.
Shares in the insurance and price comparison group Esure jumped by almost 15pc after a report the firm was attracting takeover interest, forcing it to deny that it had heard from a suitor.
Esure, which hired Deutsche Bank to run a strategic review of its Go Compare price comparison site earlier this month, said it continued to work on options but that “no approach has been received by the company” about a potential takeover
Esure Group PLC (LON:ESUR) had its price target upped by equities research analysts at Barclays from GBX 315 ($4.16) to GBX 334 ($4.41) in a research note issued on Wednesday. The firm presently has an “overweight” rating on the stock. Barclays’ price objective points to a potential upside of 31.39% from the stock’s current price.
Diversified insurer Esure (LSE: ESUR) is well placed to enjoy the end of the low-premium era, in my opinion. A backdrop of rising policy costs underpinned a 30% uptick in pre-tax profits last year, to £134m, and further hefty gains would appear to be on the cards.
Gross written premiums advanced 6.3% in 2015, and Esure expects premiums to advance between 10% and 15% in the current period. As well as benefitting from rising prices, Esure is also growing its customer base in the critical Motor segment.
The business was forced to cut the dividend in 2015 to build its capital pile, reducing the payment to 11.5p per share from 16.8p the previous year.
But with market conditions steadily improving, the City has chalked-in dividends of 13.2p for 2016 and 15.5p for next year. These figures create gigantic yields of 4.9% and 5.8%, respectively.
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