FRANKFURT (dpa-AFX) - Munich Re shares rose by 1.5 percent to 448.10 euros shortly after the start of trading on Friday following a recommendation from Bank of America. The experts believe the shares will continue their run and are now setting a medium-term target of 530 (previously 480) euros. They therefore upgraded them from "Neutral" to "Buy".

The day before, numerous banks such as the Canadian bank RBC, the investment bank Morgan Stanley, Citigroup and the private bank Berenberg had already raised their price targets for Munich Re in response to the first-quarter results published in the middle of the week. However, Bank of America's new target clearly exceeds those of the other banks mentioned.

Although the years of rising prices in property and casualty reinsurance appear to be coming to an end, the competitor of Hannover Re and Swiss Re expects prices to remain high.

In addition, the Board of Management believes it is more likely that Munich Re will exceed its previous profit target this year. CFO Christoph Jurecka therefore did not want to rule out the possibility of raising his forecast in the summer - if the second quarter goes "exceptionally well".

With the current gains, Munich Re shares are on course to reach their record high of a good EUR 454 from March. The long rise in reinsurance premiums and a favorable capital market environment have been driving the industry as a whole for some time. Since the initial setback at the start of Russia's war against Ukraine in 2022, the value of Munich Re shares has more than doubled.

In 2024 alone, the price gains have already amounted to around a fifth, which means one of the top places in the leading German DAX index. Munich Re has thus also outperformed the European insurance sector. The Stoxx Europe 600 Insurance has risen by almost nine percent so far in 2024./mis/men