There’s an unusually spring in the step of the QBE Insurance Group Ltd [ASX:QBE] share price today after brokers lifted their price targets on the insurer.
Why unusual is because QBE posted some downbeat full year results on Friday and isn’t too optimistic about its outlook.
However, the lifted price targets have sent the QBE share price up 5.67% or 51 cents at the time of writing to trade at $9.50 per share.
Why are the brokers optimistic and QBE not?
Despite what QBE themselves term a “disappointing result”, its share price climbed slightly on Friday following the release of its full-year results.
However, they did flag that their margins were improving.
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A point that sparked an influx of upbeat outlooks from brokers today.
UBS, Macquarie, Citi and Goldman Sachs all increased their price target on the insurer today, helping to driving its shares higher.
Does that make QBE a buy?
In my opinion it could pay to be cautious here.
Despite the lifted price targets from the brokers, the current QBE share price isn’t too far away from the more upbeat appraisals.
Meaning, we could see growth in the share price hamstrung.
And with no final dividend being paid due to the net loss in profit, there are other, more attractive insurers investors could stand to benefit from.
However, if you think the currently downbeat QBE share price could provide some deep-value in the future, I’d implore you to read our value stocks report first. In it you’ll discover three deep value stocks currently under-priced: These ASX gems could potentially deliver market-beating returns as the economy recovers. Click here to learn more.
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