Broker moves: IAG, Polynovo, Siteminder

UBS rates Insurance Australia Group (ASX:IAG) as a sell, trimming its price target to $4.10 from $4.20. The broker reviewed its forecast for the insurer and believes the consensus expectations are far above its ability to increase margins into financial year 2023. This comes on the back of rising prices, inflation. The recent floods are set to compound these claims cost pressures. The broker prefers QBE Insurance (ASX:QBE) and Suncorp Group (ASX:SUN).

Macquarie rates Polynovo (ASX:PNV) as an outperform with its price target of $1.60. The medical device company posted revenue growth of 59 per cent to $12.3 million in March. The broker believes the company will hit its fourth quarter sales in their flagship product Novosorb of $12.2 million and remains positive on the company as a medium to long term candidate.

Citi rates Siteminder (ASX:SDR) as a neutral with a price target of $5. The broker observes that the migration of its existing customers to its new platform is set to chip away at its short-term gross margins but anticipates margin improvement in this current financial year to financial year 2024. Citi expects its margin to grow 4 per cent from 81 per cent to 85 per cent in that period. The broker believes that the new platform will open up new selling opportunities due to its improved integration as it is designed to combine, digitise and simplify the ecosystem of booking channels, property management systems, and hotel related activities.
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Source: Finance News Network