UPDATE: Stifel Nicolaus Upgrades Mercury General to Hold on Valuation
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.
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