UPDATE: JP Morgan Downgrades Endurance Specialty Holdings to Neutral; Investments to Weigh on Margins
JP Morgan reduced its rating on Endurance Specialty Holdings (NYSE: ENH) from Overweight to Neutral with a $44 price target.
JP Morgan commented, "We had hoped stronger financial performance would follow a string of adverse earnings events (2011 catastrophes, poor 2012 crop results, and portfolio mix shifts); however, we believe the company is entering a period of investment that will mitigate significant short-term earnings gains. As a result, we see little room for financial outperformance, which could keep valuation multiples from expanding materially in the intermediate term despite what we view as a discounted valuation relative to past performance and normalized earnings levels."
Endurance Specialty Holdings closed at $40.40 on Wednesday.
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