UPDATE: Deutsche Bank Raises PT on Axis Capital Holdings on Reserve Development

In a report published Wednesday, Deutsche Bank reiterated its Hold rating on Axis Capital Holdings

, and raised its price target from $36.00 to $38.00. Deutsche Bank noted, “We are increasing our target price sizably for 2013. Net prior-year reserve development remains a core part of the earnings story longer than we had anticipated. In 2012, reserve releases accounted for 5.0% of the company's 8.7% ROE. We continue to believe this level of reserve release in unsustainable. However, we are now forecasting its decline in 2014, rather than 2013. We are far below the Street in 2014 ($4.27 vs. our $3.05), but sub-book value multiple valuation seems to imply little downside in the shares.” Axis Capital Holdings closed on Tuesday at $38.82.