Admiral showing no signs of slowdown, says RBC

RBC Capital Markets has hiked its target price for Admiral following the insurer's 2024 results released last week, saying the company showed "no signs of slowing down".

Admiral Group
10 March 2025 12:34:27

Source: Sharecast

The broker kept an 'outperform' rating on the stock, but lifted its target price from 3,550p to 3,800p.

Admiral reported on 6 March that full-year pre-tax profit was up 90% at £839.2m, as a 61% jump in UK Motor profits helped offset a more subdued performance in other divisions.

RBC said it was raising its 2025 and 2026 earnings forecasts by 8% and 6%, respectively, on the back of the results, due to better combined ratios and higher profit commissions in the UK Motor segment.

"A record year of UK Motor growth at strong margins in FY24 should sustain earnings momentum into outer years as premiums are earned through while reserve releases and profit commissions provide further support," RBC said.

With the stock trading at 15 times earnings with a dividend yield of 6%, the valuation still remains "attractive", the broker said.

Admiral's shares were up 0.9% at 3,018p by 1231 GMT.

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