Credit Suisse raises Mapfre price target and maintains underweight recommendation

MADRID, 11 Oct. (EUROPA PRESS) -

Analysts at Credit Suisse have raised their price target on Mapfre to €1.60 per share from €1.52 previously, while maintaining their view of being underweight the insurer's stocks.

In a report published this Tuesday, the firm expects the deterioration of the company's combined ratio to continue in a "weak" car market, given Mapfre's persistence in prioritizing the count of policies over contracting results, with "pressure continuous" in Spain, Brazil and North America.

Likewise, the firm's analysts expose the accelerated growth in the prices of used cars in Spain, which grows at a higher rate than the Spanish CPI. “We see more pressure on auto claims inflation in Spain than is shown in the headline CPI data and we think Mapfre will have a hard time catching up on prices as it has been gradually adding rates to the market,” the report points out.

Looking ahead to 2022 Q3 results, to be released on October 28, Credit Suisse forecasts a combined ratio of 100%, 2.8 points below consensus, and a profit of 133 million, 23% below of consensus.

For the whole of 2022, Credit Suisse estimates that Mapfre will earn 595 million euros, 1% more than previously forecast.