On Monday, Jefferies updated its financial outlook for Hannover Rueck SE (OTC:HVRRY), known as Hannover Re (HNR1:GR) (OTC: HVRRF) shares, increasing the price target to €290.00 from the previous €280.00, while reiterating a Buy rating for the stock. The revision follows the application of Standard & Poor's updated model criteria, which, according to the firm, has significantly reduced the binding constraints on Hannover Re.
The analyst at Jefferies has adjusted the 2024 ordinary dividend forecast upwards by 7.6%, doubling the subsequent rate of growth from €0.50 to €1.00. Additionally, there has been a substantial increase of 42% in the projected 2024 special dividend. This adjustment in dividend expectations is a result of a reassessment following the new model criteria.
The firm's updated estimates place their dividend predictions for the years 2024 to 2026 between 8% and 14% higher than the market consensus. This optimistic forecast is anchored in the belief that the revised constraints will allow Hannover Re more flexibility in its financial operations, potentially leading to increased returns for shareholders.
Hannover Re, a major player in the global reinsurance market, is expected to benefit from these revised constraints, as indicated by the increased price target and dividend forecast. Jefferies' analysis suggests that the company's financial health may be on a stronger footing than previously anticipated.
Investors and market watchers will likely monitor Hannover Re's performance and dividend payouts closely in the coming years, particularly in light of the adjustments made by Jefferies. The firm's stance indicates a positive outlook for Hannover Re's financial prospects through 2026.
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