Update shared on 05 Nov 2025
Fair value Increased 1.78%Analysts have modestly increased their fair value estimate for Swiss Re, raising the price target from CHF 142.39 to CHF 144.93. This change reflects ongoing adjustments to relative valuation and expectations for profit margins, even with a less favorable market backdrop.
Analyst Commentary
Recent street research on Swiss Re highlights a variety of perspectives regarding the company's valuation and future growth prospects. Both bullish and bearish views have emerged in light of recent price target adjustments and sector performance trends.
Bullish Takeaways
- Bullish analysts have modestly raised fair value estimates, suggesting that the company’s profit margins remain resilient even amidst a challenging market backdrop.
- The relative valuation adjustments suggest Swiss Re's current performance is not fully reflected in its previous share price. This points to underlying operational strength.
- Analysts believe that, despite sector headwinds, Swiss Re may maintain an edge due to its scale and ability to navigate evolving market cycles.
Bearish Takeaways
- Bearish analysts argue that Swiss Re’s stock has become overvalued relative to peers such as Hannover Re and Munich Re. There are concerns that the recent re-rating is unwarranted.
- Cautious sentiment is driven by expectations of a softening reinsurance market through 2026, raising uncertainty around Swiss Re’s ability to sustain recent profit levels.
- Some analysts have lowered their ratings and price targets, citing the need for a valuation discount to better reflect market risks and anticipated margin pressure.
- There are questions about Swiss Re's ability to outperform if sector-wide pricing continues to deteriorate for a second consecutive year.
Valuation Changes
- Consensus Analyst Price Target: The fair value estimate has risen slightly, moving from CHF 142.39 to CHF 144.93.
- Discount Rate: This remains unchanged at 3.82%.
- Revenue Growth: Projected growth has decreased slightly, changing from 3.38% to 3.20%.
- Net Profit Margin: Margins have increased marginally, rising from 8.76% to 8.79%.
- Future P/E: The expected price-to-earnings ratio has increased modestly, from 13.98x to 14.02x.
Disclaimer
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