XL Issues Better Than Expected Guidance For 2010
Analyst Brian Meredith of UBS maintains his "buy" rating on XL Capital (NYSE: XL), while raising his estimates for the company. The target price for XL has been raised from 21.00 to 21.50.
XL Capital reported its Q4 EPS short of the estimates due to smaller-than-expected loss reserve releases, higher expenses, and a higher tax rate. However, XL’s balance sheet has improved significantly and the company’s franchise is on the right track, the analyst says.
“The de-risking of investment portfolio is 80% complete, and we believe XL has close to $2bb of excess capital which it can use to repurchase stock,” the analyst mentions. XL has issued better-than-expected guidance for 2010. UBS has raised its EPS estimates for 2010 and 2011 from $2.25 to $2.70 and from $2.20 to $2.80, respectively.
