Loading...
Loading...
In a report published Monday, Keefe, Bruyette & Woods analyst Meyer Shields upgraded the rating on
Chubb Corp.CB from Market Perform to Outperform, while raising the price target from $92 to $141. The analyst believes that another bid for the company is unlikely.
"[T]here are very few insurance companies big enough to even consider an offer, and
Berkshire Hathaway, Inc.BRK (which could, of course) is already organically building its own specialty insurer, and it typically avoids auctions," Shields stated.
Although the 26.1 percent increase in Chubb's stock on last Wednesday reflects the current share price of
ACE LimitedACE, adjusted for the takeover metrics, the analyst believes that Chubb's stick is significantly undervalued, and "along with buying ACE itself, we see buying Chubb as an indirect way of capturing that expected upside," Shields added.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
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!
Already a member?Sign in