Investment Income To Support TRV’s Stock Valuation

Analyst Michael Nannizzi of Oppenheimer & Co maintains his "outperform" rating on Travelers Companies (NYSE: TRV), while raising his estimates for the company. The target price for TRV has been raised from $58 to $60.

According to Oppenheimer & Co, “Travelers Companies remains positioned well, in our view, to manage both its capital and returns, even during a difficult period characterized by competitive pricing, soft relative demand, and low yields.”

“If Travelers Companies has the ability (and willingness) to shrink without diluting shareholders during challenging times and the ability to grow when times are good, the investment income should support valuation during soft cycles and give way to underwriting operations when rate markets return to more profitable levels,” the analyst mentions. “In TRV's case, we think this approach should provide considerable support for the company's stock price at book value,” the analyst adds.

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