Admiral Group's shares (LON:ADM) experienced a downturn this morning, trading 1.67% lower, following a downgrade from JPMorgan. The revision reflects a broader, less optimistic outlook for the European insurance sector in 2026.
The stock's decline follows JPMorgan analyst Kamran Hossain's adjustment of Admiral Group's rating from ‘Neutral' to ‘Underweight'. The price target was also reduced, moving from 3,050 GBp to 3,000 GBp. This action is part of JPMorgan's wider assessment of the European insurance landscape, which suggests that after two years of outperformance, the sector's total return outlook appears more limited due to stretched relative valuations and stalling earnings momentum.
JPMorgan advises markets to concentrate on companies demonstrating restructuring catalysts, strong capital returns, and the potential to exceed consensus growth or margin expectations. This revised stance has implications for the broader insurance sector, as evidenced by similar ratings adjustments for other European insurers. Zurich Insurance Group, for example, had its ‘Underweight' rating maintained, with a price target of 490 CHF, reflecting concerns about weakened business figures and potential downward revisions to consensus estimates.
Price Targets
The market's reaction suggests a recalibration of expectations, off the back of the downgrade, with the shares now more than 16% off August highs.
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