Berenberg upgrades Beazley to 'buy'

3rd Jun 2014 09:11

Broker Berenberg has begun advising its clients to 'buy' into Lloyd's of London insurer Beazley.Berenberg said it was raising Beazley to a 'buy' from 'hold' with a price target of 278p, up from 271p.The broker said Beazley had an impressive return-on-equity track record which had trumped that of its Lloyd's peers in the last two years, warranting a premium trading multiple.The company was well-placed to maintain its superior earnings profile despite pricing headwinds facing certain parts of its business, the broker said."A subdued investment return offers the potential for earnings upgrades in the medium term," it added.In February, Beazley said annual profits had risen to $313.3m from $251.2m a year earlier while return on equity had increased to 21% from 19%.It said a quiet year for losses in its businesses that deal with catastrophes had been complemented by excellent performances in other areas.Shares in Beazley rose 1.1p to 248.7p in 09:06 in London.PW