RBC announced on Wednesday that it had lowered its price target on Scor from 32 to 29 euros, while renewing its 'outperform' opinion on the stock.

In a study of the European reinsurance sector, the Canadian broker explains that it considers the French group's shares to remain 'cheap' following the announcement of a change of CEO.

This decision leaves the operational turnaround and the strategic plan on hold, it explains, until the new leader takes up his post.

Beyond this element, the broker believes that a simple improvement in the combined ratio in property-casualty reinsurance could lead to a revaluation of the share price.

With a PER of 4.6x to 2024, compared with an average of 9x for the sector, Scor shares are trading at historic lows, argues RBC, for a dividend yield of 8%.

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