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UPDATE: Goldman Sachs Downgrades WR Berkley to Sell; Valuation Rich Compared to Peers

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Goldman Sachs reduced its rating on WR Berkley (NYSE: WRB) to Sell with a $35 price target.

Goldman Sachs noted, "We are adding shares of WRB to the Americas Sell list and see downside of 7% from current levels to our price target of $35. We believe that WRB's peer-high valuation multiple of 1.2X book value is relatively expensive when compared to peers that are trading at an average of 1.0X book value, given that its return on equity is near the peer average. We also believe that WRB is more exposed to low interest rates in the form of reinvestment risk than peers given its high portfolio leverage and long investment duration.

WR Berkley closed at $37.40 on Monday.

Latest Ratings for WRB

DateFirmActionFromTo
Oct 2014Compass PointMaintainsNeutral
Oct 2014Keefe Bruyette & WoodsMaintainsMarket Perform
Aug 2014Deutsche BankMaintainsSell

View More Analyst Ratings for WRB
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Downgrades Intraday Update Analyst Ratings

 

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