UPDATE: Drexel Hamilton Initiates Buy, $75 Target on Chubb
Drexel Hamilton initiates coverage on Chubb (NYSE: CB) with a Buy rating and a price target of $75, as it sees the company to be a solid dividend play.
Drexel Hamilton notes, "Chubb has a current dividend yield of 2.3% and a 5 year dividend growth rate of 9.4%. Chubb consistently increased its dividend over the last 29 years. In our view, it is likely to do so again in 2012. ...We estimate EPS of $5.57 for 2012 and $6.57 for 2013. While growth in 2012 will be slow, we expect more normal catastrophe losses, improved pricing, and continued share buybacks to boost 2013 earnings."
CB closed at $67.42 a share on Wednesday.
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