Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Randy Binner of FBR Capital Markets has downgraded Metlife Inc (NYSE: MET), Hartford Financial Services Group Inc (NYSE: HIG) and Maiden Holdings, Ltd. (NASDAQ: MHLD) to Market Perform, saying the risk/reward for these stocks have become less attractive after the election rally.
Following Donald Trump’s win, Binner said, on average, life names have climbed 15 percent, property/casualty have risen 11 percent and mortgage insurers have advanced 7 percent.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The rally was attributed to the higher rate environment, potential benefit from a lower corporate tax rate and the benefit of deregulation.
Insurance Rally Specifics
“In general, our analysis indicates that insurance stocks have factored in many of these potential benefits. The challenge, of course, is that yields could again move lower, and tax reform and deregulation are not certain,” Binner wrote in a note.
On Metlife, Binner said his analysis shows shares efficiently discounting spread, tax and deregulation factors post-election, while the upcoming spin catalyst and associated buyback are now better priced into shares.
On Hartford, the post-election rally has put shares close to FBR’s $47 price target, while Maiden shares jumped 17 percent despite seen only marginally benefiting from higher rates.
“Given its Bermuda domicile, the name does not see much potential tax benefit, nor a benefit from deregulation. MHLD is trading at 92 percent of its five-year min/max P/E valuation,” Binner continued.
Under-Discounted Stocks
The analyst said the following stocks have under discounted the benefit of the post-election environment:
- AFLAC Incorporated (NYSE: AFL).
- Allstate Corp (NYSE: ALL). AmTrust Financial Services Inc (NASDAQ: AFSI).
- MGIC Investment Corp. (NYSE: MTG).
- NMI Holdings Inc (NASDAQ: NMIH).
- Progressive Corp (NYSE: PGR).
- Radian Group Inc (NYSE: RDN).
- Travelers Companies Inc (NYSE: TRV).
Analyst's Changes
Further, Binner raised the price targets of the following companies.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.