UBS has upgraded Admiral Group plc shares to 'buy' from 'neutral' on valuation grounds.
It points out that the stock in the general insurer is currently trading at a near-five-year low, yet the fundamentals look rock solid.
UBS pointed out the predicted three-year compound annual growth rate is 21%.
Its price target is 3,200p, which represents a 17% premium to the current stock valuation of 2,728p (up 45p).