Keefe Bruyette & Woods Has $11 Target On Hallmark Financial Services (HALL)

Keefe Bruyette & Woods has an $11 target and Market Perform on shares of Hallmark Financial Services, Inc.

after the company reported quarterly results. In the research note Keefe Bruyette & Woods writes, "Hallmark reported an operating loss on weaker underwriting results driven by $0.14/share of adverse reserve development and a higher current AY loss ratio. We are lowering our 2010 and 2011 EPS estimates. We are maintaining our $11 target price. With the shares currently trading at approximately 80% of book, we are maintaining our Market Perform rating. The P&C industry is in a period of weakening profitability and slow growth. We favor those companies that we believe are best positioned to increase book value over time. KBW recommends an underweight position in the sector." Shares of Hallmark Financial Services, Inc. are down 74 cents to $8.74, in early Tuesday trading.