市场见解

Top broker says QBE (ASX:QBE) share price is a buy

This leading broker remains bullish on QBE…
The post Top broker says QBE (ASX:QBE) share price is a buy appeared first on The Motley Fool Australia. –

The QBE Insurance Group Ltd (ASX: QBE) share price has been among the best performers on the ASX 200 in 2021.

Since the start of the year, the insurance giant’s shares have risen just over 40%.

Can the QBE share price keep on rising?

The good news for shareholders is that one leading broker still believes the QBE share price can keep rising from here.

According to a recent note out of Goldman Sachs, its analysts have a conviction buy rating and $13.41 price target on its shares.

Based on the current QBE share price of $12.05, this implies potential upside of 11% over the next 12 months before dividends.

Furthermore, Goldman is forecasting partially franked dividends per share of 37 cents in FY 2021 and then 58 cents in FY 2022. This represents yields of 3.1% and 4.8%, respectively, over the two financial years.

What did the broker say?

Goldman was very pleased with QBE’s performance during the first half of FY 2021 and notes that it delivered a result ahead of its expectations.

It commented: “QBE’s 1H21 cash NPAT of US$467mn was 41% ahead of our US$330mn estimate. DPS of A11c was however below our A19c estimate (interim payout ratio of 27%) while the balance sheet remains in good shape, with the PCA ratio at 1.73x (GSe 1.70x) and gearing at 31.1%.”

Overall, the broker believes its headline earnings are now representing underlying momentum. As a result, its analysts have upgraded their earnings estimates for the coming years.

It explained: “On balance, we upgrade our FY21-FY23 cash EPS by +13%/+5%/+3%, largely a function of reduced COVID costs and 1H releases in FY21, though stronger growth and margin in FY22/FY23.”

“We note QBE formally flagged an intention to increase growth asset exposure in its investment portfolio over the medium term. With excess capital seemingly earmarked for growth currently, we have not yet modelled any re-weighting, though note a shift from the current 7% growth asset mix to the 15% ceiling at current FUM (and a 50bps running yield) would equate to a normalised annualised NPAT uplift of c.US$100m,” it added.

All in all, the QBE share price may be smashing the market this year, but this leading broker believes it could continue doing so over the next 12 months.

The post Top broker says QBE (ASX:QBE) share price is a buy appeared first on The Motley Fool Australia.

Should you invest $1,000 in QBE right now?

Before you consider QBE, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and QBE wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

10 ASX shares we’re overweight in right now: fund

Leading brokers name 3 ASX shares to buy today

ASX 200 Weekly Wrap: New records just keep coming for the ASX 200

3 of the best ASX results from week two of reporting season

These were the best performing ASX 200 shares last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!