No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - RBC Capital Markets downgraded Sabre Insurance on Friday to 'sector perform' from 'outperform' and cut the price target to 135p from 170p as it said it was "waiting for delivery".
"The current competitive environment in UK Motor provides a difficult backdrop for Sabre's 'Ambition 2030' plan, announced in December 2024, but which is only starting to roll-out," the bank said.
"In this transfer of coverage note, we make material cuts to EPS forecasts after a disappointing nine-month trading update, and a more cautious view of Sabre's competitiveness going forward, given consolidation in the sector and increasing barriers of scale."
The bank said it would rather stay on the sidelines until evidence of market share gains can be seen.
RBC said the target price cut reflects lower EPS and a cut to target multiple from 12x to 10x FY26E EPS, on lowered long-term growth assumption to 1% from 2.5%.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.