UPDATE: Keefe, Bruyette & Woods Upgrades EMC Insurance Group to Outperform, Raises PT as Valuation Discount to Peers is Too Much to Ignore

In a report published Friday, Keefe, Bruyette & Woods analyst Neil Cybart upgraded the rating on EMC Insurance Group EMCI from Market Perform to Outperform, and raised the price target from $30.00 to $35.00. In the report, Keefe, Bruyette & Woods noted, “Following EMC Insurance's 4Q13 results, we're raising our target price to $35 and upgrading the shares to Outperform on valuation. With shares down 7% YTD (trading at 83% of current book), we view a valuation closer to its peer group average (95% forward book) is more appropriate for a conservative insurer, with redundant reserves, that is seeing above-average rate increases and continued AY underwriting improvement. With 27% total potential upside to our $35 target price (including the 3% dividend yield), we recommend buying EMCI shares before the valuation gap closes.” EMC Insurance Group closed on Thursday at $28.33.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorUpgradesAnalyst RatingsBruyette & WoodsKeefeNeil Cybart
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!