Is this as good as it get for QBE Insurance (QBE)?
QBE benefits with increase in interest rates. Since the stock market is forward thinking. Is this as good as it will gets for QBE and lighten the load ?
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Answer
Hi Linda,
From an interest rate perspective we would tend to agree with you believing QBE offers little upside above $15 however in Q1 QBE delivered a solid FY22 result illustrating the excellent turnaround and simplification that MM believes is unfolding across the business i.e. there are more levers involved with QBE than just interest rates.
MM believes that that the interest rate cycle which has been supportive of QBE is close to peaking for 2023 it leads us to think there are better places to be invested this side of Christmas but into dips back below $14 we see value as the turnaround story gathers momentum i.e. we are looking for a relatively tight trading range of $13.50-$15.50 into 2024.
