Jefferies cuts Munich Re to 'hold', seeing little upside, shares fall
** Munich Re's MUVGn.DE shares fall 1.7% after Jefferies cuts its rating for the German reinsurance company to "hold" from "buy", seeing little upside to the stock
** The broker notes consensus earnings for the Bavarian-based firm have doubled since hurricane Ian, alongside the share price, however sees little upside, with management stating net income of 7 billion euros ($7.60 billion) is unlikely
** It deems hurricane Milton as a net negative for the industry, estimating the loss for the industry at around $40 billion
** Jefferies deems further upside need to be found from capital returns, notes management's comment of the difficulty to imagine a bigger uplift in capital return as 2023's
** Out of 21 analysts that cover Munich Re, ten rate the stock "strong buy" or "buy," nine rate "hold" and two rate the stock "strong sell" or "sell"
($1 = 0.9212 euros)
Reporting by Tristan Veyet
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