The title of Generali is back at the highest for over two years in Piazza Affari. At the beginning of the afternoon, the shares of the insurance company gained almost one and a half points, moving above the threshold of 15 euros for the first time since 3 June 2011. Since the beginning of August 2012, when the CEO Mario Greco took over group, the stock gained 48%.
The rise in prices is linked to a series of positive reports published by analysts following the announcement a week ago of the half-year results. The accounts showed a 28% increase in net income, to 1,08 billion, with an operating result of 2,37 billion (+5,3%), the best half-year performance for five years now.
“Management continues to make progress to make the company better capitalised, less indebted and more profitable,” comment the HSBC experts, who also appreciate the fact that Greco continues to simplify the group's organizational structure. The English broker sets the target price at 16 euros, indicating that most of the objectives for 2015 can be achieved.
According to analysts of Hsbc, the improved profitability is due to changes in the life business mix, better P&C results and higher assets under management, which offset lower investment returns.
Even for analysts of BofA Merrill Lynch -- which also expected slightly better second-quarter results and trimmed earnings-per-share estimates downwards -- the company is on track to meet its earnings and capitalization targets. The "buy" recommendation is maintained, with a target price of 16 euros in this case as well.
Banca Akrosfinally – which on the basis of the half-yearly data had raised the target price from 14 to 15 euro – he focused on the clear improvement of the combined ratio in Italy (to 90,8%), with a rise of 8,9 points in one year.
