Morgan Stanley Adds RNR To Its Best Ideas List
By BenzingaStaffL
March 31, 2011 7:45 AM
March 31, 2011 7:45 AM
RenaissanceRe Holdings Ltd. (NYSE: RNR) is a “favorite stock given 80%+ of its business is exposed to improving pricing trends in global property reinsurance,” Morgan Stanley said in a report announcing that RNR had been added to its Best Ideas list.
“We estimate RNR has $800 million of excess capital (25%+ equity) to capitalize on improving dynamics and are raising our 2012e EPS to $10.00 from $9.14. RNR has earned a 20%+ ROE since inception and enjoys the highest ratings in reinsurance,” Morgan Stanley writes. “We see 27% upside to our $85 price target and a positive risk-reward skew.”
RenaissanceRe Holdings closed Wednesday at $67.05.
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