Market Overview

UPDATE: Stifel Nicolaus Downgrades Markel Corporation to Hold Following Acquisition

Related MKL
The Motley Fool's Top Stock Picks From Last Quarter
Motley Fool Wealth Management's Top 20 Stock Holdings
Invest Like Yale And Blackstone (Seeking Alpha)

Stifel Nicolaus reduced its rating on Markel Corporation (NYSE: MKL) from Buy to Hold and removed its $550 price target.

Stifel Nicolaus commented, "We are downgrading the shares of Markel to Hold from Buy following its announced acquisition of Alterra (ALTE: $28.18, Not Covered). We think Markel's own overwhelmingly positive long-term underwriting track record challenges the cited benefits of increased diversification, product depth, and leadership positions. We're concerned about integration-related distractions in general, and the prospect of less-favorable reserve development in particular, likely limiting near-term book value creation. Long term-focused investors can rely on Markel's proven ability to re-underwrite books of business over time, but the near-term outlook seems too uncertain to warrant a Buy rating."

Markel Corporation closed at $436.24 on Wednesday.

Latest Ratings for MKL

May 2015Keefe Bruyette & WoodsMaintainsMarket Perform
May 2015RBC CapitalMaintainsOutperform
Nov 2014Keefe Bruyette & WoodsMaintainsMarket Perform

View More Analyst Ratings for MKL
View the Latest Analyst Ratings

Posted-In: Stifel NicolausAnalyst Color Downgrades Intraday Update Analyst Ratings


Related Articles (MKL)

Get Benzinga's Newsletters