2338 GMT - IAG's improved profit outlook isn't enough to turn Morgan Stanley analysts bullish on the stock. They raise their FY 2026 profit forecast on IAG's acquisition of Queensland state motor insurer RACQ, but maintain an equal-weight recommendation on the stock. The MS analysts warn that IAG's new-customer growth is still lagging the pace at which the overall motor-insurance market is growing. Rival Suncorp is keeping pace with market growth, they add. MS sees IAG's insurance margin slipping to 14.7% in FY 2026 on dilution from RACQ, but lifts its net profit forecasts for the next two fiscal years on synergy driven EPS accretion. MS lifts its target price 4.1% to A$8.80. Shares are at A$8.71 ahead of the open. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

September 10, 2025 19:38 ET (23:38 GMT)

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