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UPDATE: Stifel Nicolaus Upgrades Mercury General to Hold on Valuation

Related MCY
Mercury General (MCY) Up to Strong Buy On Robust Q2 Earnings
Earnings Scheduled For July 28, 2014

Stifel Nicolaus upgrade Mercury General (NYSE: MCY) from Sell to Hold.

Stifel Nicolaus commented, "Mercury's shares closed at $38.35 on Tuesday, which is less than 1% above our $38 fair value estimate. … Since January 2nd, Mercury's shares have traded down by over 5% in response to recently-passed California auto insurance regulations that prohibit insurers from knowingly using parts of inferior quality (i.e., most usually non-OEM parts). We estimate that the regulations could boost claim costs by about 1.7%, adding about 120 bps to Mercury's full-year combined ratios in 2013 and 2014."

Mercury General closed at $38.35 on Tuesday.

Posted-In: Stifel NicolausAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings

 

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