UPDATE: Miller Tabak + Co. Downgrades ACE Limited to Hold, Raises PT Following Recent Influx of Capital, Premium Valuation

In a report published Thursday, Miller Tabak + Co. analyst Tom Mitchell downgraded the rating on

from Buy to Hold, and raised the price target from $91.50 to $96.35. In the report, Miller Tabak + Co. noted, “Given a recent influx of capital into the worldwide property/casualty industry, we believe a sustained strong up-cycle in rates is not in the cards for 2014. Meanwhile, the industry -- and ACE -- has so far enjoyed very modest catastrophe claims costs in 2013, a condition which both enhances current earnings and promises the potential for more new capital to enter the market and, in some lines, stimulate the migration of rate competition from ‘CAT' coverages to other underwriting areas. These market conditions strongly suggest to us that ACE, having achieved a premium equity valuation vs. its peers, will trend toward matching the group's overall returns unless or until events causing more severe underwriting losses draw fresh attention to ACE's superior underwriting disciplines. Consequently, we are cutting our rating on ACE's stock to a ‘Hold' from a ‘Buy'.” ACE Limited closed on Wednesday at $94.13.