IAG's earnings prospects support re-rating: Morgan Stanley
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter verification code' }}
{{ completedStep1 ? 'Authentication & Security' : content.trialHeading.replace('{0}', user.FirstName) }}
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Verify your email address by clicking on the link we sent to {{user.Email}}
- You now have free access, we look forward to helping you on your financial journey.
Insurance Australia Group's strong earnings momentum, "supercharged dividend" and excellent defensive qualities demand a further re-rating of the stock, according to at least one broker.
Morgan Stanley lifted its one-year forward price target on the stock to $6.20 from $5.80 and reiterated its "overweight" recommendation on the grounds that IAG is well placed to deliver stronger margin guidance for 2013-14 – between 12-14% above the previous year's estimated 11-13% – amid rising economic uncertainty and market volatility.
"IAG's defensive qualities shine through with the insurance cycle broadly uncorrelated to the economic cycle," Morgan Stanley said.
The broker said that while the insurer's premium rate increases may be slowing, margins will continue to expand into 2014-15 thanks to lower reinsurance costs and claims inflation.
What also stands out for Morgan Stanley is IAG's second-half dividend yield. The broker has lifted its estimate to six cents per share and believes there is room for dividends to rise even further in the periods ahead.
Call 1300 880 160
Start a chat
Schedule a call
