Citi has downgraded Admiral Group Plc (LSE:ADM) to 'neutral', after the shares delivered a 30% total return in 2025.
The bank has lifted its 2025 and 2026 earnings per share estimates by 3–4%, mainly reflecting higher investment income, and introduced new forecasts for 2027.
Citi’s target price for Admiral has been raised by 5%, but the broker warns that the outlook for UK motor insurance is turning less favourable as rates begin to decline.
With a total expected return of 13%, the US bank now sees limited room for further upside.
The shares were flat at 3,302p.