UPDATE: Nomura Initiates Coverage on ACE Limited with Buy Rating, $105 PT on Multiple Positive Factors

In a report published Wednesday, Nomura analyst Cliff Gallant initiated coverage on

with a Buy rating and $105.00 price target. In the report, Nomura noted, “ACE is a market leader in the US, Bermuda and London, and has a rapidly growing Asian presence. We expect its specialty businesses to drive higher returns with better growth and profits than most competitors. In an improving global economic environment, we expect growth to ramp up quickly and ROEs to hit mid-teens (from a 3-year average of 10.7%). Long term, we think that ACE's growth prospects, balance sheet strength, and stability of earnings make the shares a compelling Buy. Our target price of $105 reflects a 1.15x forward book value multiple.” ACE Limited closed on Tuesday at $88.79.