Generali among the best, Citi returns to cover the stock with 'buy' rating

(Il Sole 24 Ore Radiocor) - Positive session for Generali which, with an uptrend of around two points, is among the best of the Ftse Mib. Citi's analysts, who restarted coverage on the stock with a 'buy' rating and a target price of EUR 43.4 per share, are giving the boost. Generali, which Citi has included among the "top picks", the favourite stocks, in the insurance sector, is considered an example of "serenity and durability in a riskier world".

In particular, according to analysts, 'market estimates are too cautious regarding the improvement of P&C margins', especially since the forecast is that 'life flows will continue to rebound. Earnings per share are expected to CAGR 10% over the 2025-2028 period, exceeding consensus'. Furthermore, "the generation of operating capital, working capital, is set to improve strongly, driven by P&C, and free cash flow could surprise positively". For Citi Generali 'offers the highest total return potential among multi-line peers at a P/E of 11.5 times'.

Citi also points out that Generali shares have performed very well over the past two years, reflecting a combination of recovering macroeconomic sentiment in Italia and successful strategy implementation. "Over the past six months the upwardly revised earnings consensus has continued, unlike other multi-line companies, while the P/E has increased from around 10 times to around 11.5 times over the same period. There is good momentum in earnings growth,' the experts write, noting that the group 'remains a stable and reliable insurer with a solid track record and demonstrates long-term growth potential, which makes it more attractive than other competitors'.