UPDATE: Bank of America Upgrades Selective Insurance Group to Buy, Reiterates $26 PT on Attractive Valuation

In a report published Friday, Bank of America analyst Alison Jacobowitz upgraded the rating on

from Neutral to Buy, and reiterated the $26.00 price target. In the report, Bank of America noted, “Selective's shares have underperformed the group declining 16% year to date. We estimate total return potential for the shares of close to 17% including the above average 2.3% dividend yield. SIGI's underlying trends suggest it has made material headway in reaching its improved margin goals and that the ROE is improving. We do see some risk given our expectations of a more competitive marketplace and slowing pricing gains, still, with the shares trading at around year ahead book value, we see downside risk as limited.” Selective Insurance Group closed on Friday at $22.64.