Broker snap: Beazley results please Cannacord

6th Feb 2014 17:06

Cannacord was quick to reiterate 'buy' for Beazley with a 265p target after the insurer posted strong full year results and hiked its special dividend by a much better-than-expected 92% to 16.1p its 2012 year. Cannacord analyst Ben Cohen notes that the market had only been expecting a 9p special payout while his own forecast was for 14p. In its full year statement Beazley said that a number of markets are becoming more competitive but assured investors it still sees opportunities for moderate premium growth. Cohen views this outlook as consistent with his forecast of 4% top-line growth going forward. Cohen believes the full year results, and the capital return that will follow them, "underline the delivery on one of the best specialty businesses in the London market". He is targeting a 2014 forward multiple of 10.5. Ex-the special and second interim payouts today, Beazley is trading on close to a 2014 forward multiple of 9, which Cohen believes is an attractive entry point.By close of play, Beazley shares were up 14.6p to 268p, valuing the company at £1.345bn. KP