Analysts’ recommendations regarding PZU’s shares

In 2019, PZU stock recommendations were issued by 12 domestic and international financial institutions. In total, sell side analysts published 28 recommendations.

Statistics related to the recommendations published in 2019

In 2019 “buy” and “hold” recommendations were prevalent. One “sell” recommendation was issued in January. In September it was revised to “hold”. At year end, there were 5 “buy” and 7 “hold” recommendations.

The median target price in the recommendations valid as at 31 December 2019 was PLN 43.4, down 12.3% y/y (the decline would be 6.7% y/y after adjusting for the cut-off of the dividend in September 2019). The average target price was 10.2% higher than the share price at the end of 2019 (at the end of 2018 the deviation was 11.4%).

Price variance of the recommendation in 2019

Analysts’ expectations concerning PZU’s share price in 2019 based on recommendations in effect at the end of December 2019

Source: PZU data

In 2019 PZU’s average target share price according to analysts was PLN 45. The largest difference between the average target price and the PZU’s actual share price was observed in Q3 2019 when the recommended price was as much as 22% higher than PZU’s actual share price. The smallest difference (0.78%) was observed in June 2019. At the end of 2019 the gap was 10%, i.e. it was at a comparable level to the gap seen at the same time in 2018. At the end of December 2019 the PZU share price was PLN 40.03, while the average price from these recommendations was PLN 44.20. In the full year of 2019 the average target price determined by analysts was on average 13% higher than PZU’s market price.

Institutions issuing recommendations for PZU’s stock (as at 31 December 2019)