Market Overview

UPDATE: Credit Suisse Reiterates Outperform Rating, Raises PT on Chubb Corporation

Related CB
Earnings Scheduled For October 25, 2016
Barclays Raises Targets On Insurance Stocks Ahead Of Q3 Earnings
Will Cyberinsurance Replace Security? Cisco, Palo Alto On Alert (Investor's Business Daily)

In a report published Friday, Credit Suisse reiterated its Outperform rating on Chubb Corporation (NYSE: CB), and raised its price target from $80.00 to $84.00.

Credit Suisse noted, “With the exception of the Professional Lines segment, which still needs a couple quarters of rate increases (+9% currently) to get back to more reasonable profitability levels, margins were meaningfully improved and pricing levels remained in margin additive territory in an estimated 75-80% of Chubb's portfolio. Accident year margins improved a little more than we had expected, even when removing the benefit from low levels on ‘non-CAT' claims due to benign weather; therefore, our EPS run-rate increases 4.5% (recall we believe current pricing levels hold through 1Q'13), bringing our 2013 estimate to $6.44 (from $6.17). Accordingly, our target price rises to $84 (from $80), equivalent to 1.25x our NTM book value estimate (relative to a 10.0% 2013 ROE est.). We are also raising our 2012/2014 EPS estimates to $6.71/$6.64 (from $6.23/$6.42) respectively.”

Chubb Corporation closed on Thursday at $79.82.

Latest Ratings for CB

Sep 2016BarclaysMaintainsOverweight
Jul 2016Morgan StanleyMaintainsOverweight
Jul 2016BMO CapitalDowngradesOutperformMarket Perform

View More Analyst Ratings for CB
View the Latest Analyst Ratings

Posted-In: Credit SuisseAnalyst Color Price Target Analyst Ratings


Related Articles (CB)

View Comments and Join the Discussion!