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DFV: Buy recommendation remains – price target increases

Lemonade from the USA is planning an IPO. An issue proceeds of $ 260 million is expected. One of the aims of the money raised is to expand to Europe. Above all, the market in Germany appears attractive, from here the expansion should start.

A possible competitor of the Americans in the local market is the German family insurance, DFV. This has recently felt significant price impulses, since there are now initial comparisons between the two companies.

If the valuation of the two companies were used, DFV would appear to be clearly undervalued. The DFV also wants to continue growing in the coming year. A 40 percent increase in gross premiums seems feasible.

The FMR analysts therefore confirm the buy recommendation for the shares of DFV. The price target for paper increases from EUR 22.00 to EUR 24.00.

From the analysts’ point of view, the DFV should make a loss per share of 0.53 euros in the current year, for the coming year they expect earnings per share of 0.42 euros, which should increase to 0.62 euros in 2022. However, there should initially be no dividend.

On Friday, the DFV share rose 7.4 percent to EUR 23.00.

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