Broker snap: UBS downgrades Amlin after profit warning

3rd Aug 2011 11:38

Following Amlin's announcement on Tuesday that it is unlikely to meet its profit targets for the full year, UBS has downgraded the underwriter from buy to neutral.Due to the cut to profit guidance, the broker has reduced its full-year earnings per share forecast for 2011 by 129% to -2.4p, and by 11% for 2012 and 2013. "We turn more cautious on [Amlin] and increase the loss ratio accordingly," said analysts Brendan McMaster and Kathy Fear.After the share price closed down 16.3% to 335p on Tuesday, UBS thinks that the shares are not compelling at that level.The target price is slashed from 487p to 345p.After the tumble the day before, shares were trading 1.43% higher at 339.80p at 12:10 on Wednesday.BC