Tip from Credit Suisse pushes shares up more than 3%
Motor insurer Admiral outperformed the market with a 3% rise in its shares following a recommendation from Credit Suisse, taking its shares up 28p to 884p, the Guardian reports.
The FT and the Times said Admiral has risen 27.5p or 3.2% to 883.5p.
The Guardian reported Credit Suisse as saying: "Admiral has recently moved towards the bottom of its trading range and appears to be underpinned at this level suggesting that the dividend yield is offering some support. We expect markets to remain range bound in the near term and Admiral offers a defensive alternative within the insurance sector with a track-record of delivery and cash growth.
"Admiral is ideally positioned to take advantage of improving pricing conditions in the UK personal motor market, which currently offers some of the more attractive increases across Europe (rates up 9% in the first quarter of 2009). Its distribution model is focused on the highest growth segments of the UK market with vehicles insured by Admiral, a key driver of earnings power, up 16% year on year at the first quarter of 2009 stage. This reflects management's track record of delivery and the resilience of selling a 'compulsory' product in a recessionary environment. We expect this resilience to continue into the first half numbers."
- Aviva was up 3.4 per cent to 341½p.
