UPDATE: Stifel Nicolaus Raises PT to $30 on XL Group on Core Underwriting Beat

Stifel Nicolaus reiterated its Buy rating on XL Group

and increased its price target from $28 to $30. Stifel Nicolaus noted, "XL's 3Q12 operating EPS of $0.61 beat the Street's $0.49 and our $0.51 estimates, reflecting a better-than-expected core loss ratio, lower-than-expected CAT losses, and a better-than-expected tax rate. … Much of the 3Q12 beat reflected core loss ratio improvement as XL's underwriting actions bear fruit, while 2.5 points of favorable PPRD trailed our 3.3 point estimate." XL Group closed at $24.22 on Monday.