Mapfre shares have soared more than 7% after Bank of America (the largest bank in the United States), revised up its valuation of the insurer, changing its stance from “neutral” to “buy.” Stocks have reached their highest level since March 2020.
The shares were trading below their pre-pandemic levels despite the fact that the most difficult part of Covid-19 “is now far behind,” analyst Andrew Sinclair said in a note.
This expert also highlights the titles of Mapfre are now offering one of the best dividend yields in the market, close to 8%, and that soon the firm will receive a large compensation from CaixaBank for the breakdown of the bancassurance alliance that Mapfre had with Bankia (now absorbed by CaixaBank). “This cash is going to give you extra comfort,” explains Sinclair.
Bank of America experts consider Mapfre a good buying opportunity. The company has appreciated 24% so far this year.
The insurer explains that the market has also welcomed the recently agreed decision to increase the interim dividend by 20%, by raising it from five to six cents per share.
In its latest presentation of results, Mapfre showed that the business in Spain continues to grow strongly, that its reinsurance subsidiary has fully recovered and that the reorganization plans that began five years ago are beginning to bear fruit.