Hiscox’s Strategic Growth and Dividend Boost: A Buy Rating Affirmed by Philip Kett

In a report released today, Philip Kett from Jefferies upgraded Hiscox (HCXLF – Research Report) to a Buy, with a price target of p1,500.00.

Philip Kett has given his Buy rating due to a combination of factors including Hiscox’s recent investor day announcements. The company surprised investors with a commitment to significantly increase dividends, which is a positive signal for shareholders, especially given the unexpected timing ahead of the windstorm season. This move indicates a strong confidence in the company’s financial health and future cash flows.
Additionally, Hiscox has outlined a strategic plan to accelerate growth in its Retail segment, which has historically been a key differentiator for the company. The management’s commitment to achieving double-digit growth by 2028, coupled with a detailed presentation, adds credibility to this goal. Furthermore, the launch of a long-term operating efficiency program is expected to yield substantial cost savings, enhancing profitability. These strategic initiatives, along with a favorable valuation compared to historical averages, support the Buy rating with an anticipated total return upside.

In another report released on May 30, Exane BNP Paribas also upgraded the stock to a Buy with a p1,400.00 price target.