RBC Capital Markets downgraded Sabre Insurance Group Plc on Friday to 'sector perform' from 'outperform' and cut the price target to 135p from 170p as it said it was "waiting for delivery".
"The current competitive environment in UK Motor provides a difficult backdrop for Sabre's 'Ambition 2030' plan, announced in December 2024, but which is only starting to roll-out," the bank said.
"In this transfer of coverage note, we make material cuts to EPS forecasts after a disappointing nine-month trading update, and a more cautious view of Sabre's competitiveness going forward, given consolidation in the sector and increasing barriers of scale."
The bank said it would rather stay on the sidelines until evidence of market share gains can be seen.
RBC said the target price cut reflects lower EPS and a cut to target multiple from 12x to 10x FY26E EPS, on lowered long-term growth assumption to 1% from 2.5%.