Metzler Says Munich Re Balance Sheet in 'Comfortable' Position; Price Target Raised

12:40 PM EST, 11/04/2026 (MT Newswires) -- Metzler Capital Markets increased its price target for Munich Re (MUV2.F), highlighting that the German reinsurance group is in a "comfortable" position in terms of its balance sheet quality despite pricing pressure. The research firm changed the price target to 643 euros from 600 euros, while reiterating its buy rating on the stock, following the reinsurer's third-quarter update, according to a Wednesday note. Munich Re's preliminary net profit amounted to 1.7 billion euros, ahead of Metzler's forecast of 1.68 billion euros. "We keep our positive stance on Munich Re, based on our assessment of a strong underwriting expertise and a comfortable balance sheet position. Prices for non-life reinsurance cover are retreating from a previously high level. However, we believe that Munich Re can withstand some pricing pressure and still post ~18% ROE in 2027e and 2028e," analysts said. "The capital position should allow for another buyback to be announced in Q1/27, and an increasing dividend seems likely as well." Against this backdrop, Metzler also lifted its EPS estimates by 3% for 2026, 2.8% for 2027 and 3.9% for 2028, largely driven by lower major claims burden assumptions in 2026. Munich Re is scheduled to publish its full third-quarter results on Nov. 12.