Is the IAG share price a buy following the insurer's latest update? – The Motley Fool Australia

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The Insurance Australia Group Ltd (ASX: IAG) share price is rangebound today and now trades flat at $4.52 apiece.
After posting its preliminary FY22 results and FY23 guidance last week, IAG shares took off and now trade at their highest mark since June.
The insurer booked a $347 net profit after tax (NPAT) and forecasted FY23 gross written premium in the range of 14–16%.
Analysts at UBS certainly don’t think so. The broker rates IAG a sell and values the company at $4.10 per share.
Following IAG’s preliminary results, the UBS team was unimpressed with the growth trends and noted profit margins are below consensus estimates.
It said that “[r]eserve levels have again proved insufficient as a further top-up was required,” which poses a key downside looking ahead.
Meanwhile, analysts at Macquarie led by Andrew Buncombe reiterated the bank’s outperform rating with a $5.40 price target.
In fact, Macquarie joined 7 other brokers in revising their price targets and/or recommendations on IAG following its preliminary earnings update, per Refinitiv Eikon data.
This contrasts against 2 brokers rating the IAG share price as a hold and sell respectively.
The consensus price target from this list is $4.98 per share, suggesting a small amount of mispricing versus market price.
It is yet to be seen if further upgrades/downgrades are to come through from brokers covering IAG.
In the past 12 months, the IAG share price has lost 9%, despite clipping a 6% gain this YTD.
Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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