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UPDATE: JP Morgan Downgrades PartnerRe to Underweight on Limited Upside, Valuation

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JP Morgan reduced its rating on PartnerRe (NYSE: PRE) from Neutral to Underweight and with a $75 price target.

JP Morgan commented, "We believe the company's earnings and ROE outlook, and therefore stock prospects, are limited over the next 12 months. First, reinsurance demand trends remain lackluster, while secular trends are mixed. This is a headwind for top-line growth as well as any significant short-term improvements to operating leverage. Second, pricing trends in reinsurance will not likely be as strong as those in insurance, despite losses from Sandy, which could put the company at a disadvantage relative to hybrid peers. Third, the company's diversity could be a relative weakness financially near term, versus peers with shorter duration liability (better returns) and asset (less reinvestment headwinds) portfolios."

PartnerRe closed at $81.86 on Wednesday.

Latest Ratings for PRE

DateFirmActionFromTo
Jan 2015Deutsche BankMaintainsHold
Jan 2015BarclaysMaintainsOverweight
Dec 2014JP MorganInitiates Coverage onNeutral

View More Analyst Ratings for PRE
View the Latest Analyst Ratings

Posted-In: JP MorganAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

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