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Investing.com - UBS raised its price target on Vienna Insurance Group (VIG:AV) to EUR72.00 from EUR65.40 on Wednesday, while maintaining a Buy rating on the stock. The company’s ADR (VNRFY) is currently trading at $11.84, just shy of its 52-week high of $11.93.
The price target increase follows the inclusion of VIG’s recently announced acquisition of Nurnberger in UBS’s base case model for the company. VIG stock has been the strongest performer in European Insurance in 2025, with InvestingPro data showing an impressive 111.15% year-to-date return.
Nearly one-third of VIG’s 2025 stock gains have occurred since December 4, when the company announced its new strategic plan. According to UBS, this plan improved investor visibility and established ambitious three-year targets. The company is forecast to achieve an EPS of $7.48 for fiscal year 2025 with projected revenue growth of 3%.
Despite the strong performance, UBS considers VIG among its top picks in the sector, citing high organic growth potential and projected double-digit EPS growth over the next three years. The firm notes that VIG is the leading player in Central and Eastern Europe, one of the fastest-growing insurance regions globally. This aligns with the company’s demonstrated revenue growth of 11.83% in the last twelve months.
UBS believes VIG’s valuation discount to the sector is too wide, with the stock trading at less than 7x 2027 estimated PE, compared to the sector average of approximately 10x. Currently, the stock trades at a P/E ratio of 11.84 with a notably low PEG ratio of 0.59, suggesting potential undervaluation relative to growth prospects. InvestingPro analysis rates the company’s overall financial health as "GREAT" with additional insights available for subscribers.
In other recent news, S&P Global Ratings has revised its outlook on Vienna Insurance Group and its core subsidiary VIG RE to positive from stable, affirming their ’A+’ ratings. This change highlights the company’s significant progress in diversifying its business operations and expanding its scale and earnings, especially in Central and Eastern Europe. The growth in these regions has helped broaden Vienna Insurance Group’s earnings base and lessen its reliance on traditional markets such as Austria and the Czech Republic. These developments are seen as a positive step for the company, reflecting its strategic efforts to enhance its market position.
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