UPDATE: WR Berkley Downgraded by Deutsche Bank on Valuation
In a report released Thursday, Deutsche Bank analyst Joshua Shanker downgrades WR Berkley (NYSE: WRB) from Hold to Sell, lowering price target from $42 to $36.50.
The analyst comments, "We believe there are a number of headwinds/negative catalysts facing W.R. Berkley, which could act as triggers depressing the stock's valuation. However, at the heart of this downgrade, Berkley stock simply seems expensive."
The report claims that WRB's reserves will not be enough to meet future loss payments. Company reports have yet to indicate any reserve deficiency but what they have reported is waning.
WRB closed Wednesday at $40.37 and is currently trading down at the $39.72 level.
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