UPDATE: Sterne Agee Initiates Maiden Holdings with Buy Rating on Attractive Valuation

In a report published Thursday, Sterne Agee analyst Dan Farrell initiated coverage on Maiden Holdings MHLD with a Buy rating and $13.00 price target. In the report, Farrell noted, “We are initiating coverage on MHLD with a Buy rating and a $13 price target. Given a number of positive drivers, we see significant earnings growth over the next two years and project ROE moving to the 12%-13% range by 2014. In addition, MHLD has lower than average earnings volatility given its focus on more predictable lower layers of coverage. With the stock trading below peer multiples, we view valuation as attractive.” Maiden Holdings closed on Wednesday at $10.47.