It has been a record breaking day for insurance company, Admiral.
The car insurance specialist, which has its headquarters in Cardiff, Wales, was able to climb to a record high on Wednesday thanks to the ongoing rally on the FTSE 100.
Its surge comes as UBS, the company’s joint house broker, turned positive on the car insurer with a £23.39 price target. In addition, a consumer survey commissioned by the broker suggested that Admiral could extend its brand into home insurance – and that it could consider an international roll-out.
In the Financial Times
, UBS is quoted as stating that investors are giving: “very little (if any) valuation ascribed to what could be the major growth drivers of group earnings over the next five years. UK car insurers have been the best performing subsector in 2016, re-rating due to defensive characteristics, yield attractions and a rising rate environment. We now expect greater appreciation of the growth opportunity, ultimately driving near-term earnings surprises and further multiple expansions.”
Admiral was able to close the day 2.8% higher with its stock having leapt nine-fold since its flotation back in 2004.
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