UPDATE: Deutsche Bank Initiates Coverage on Verisk Analytics with Buy Rating, $65 PT on Great Outlook

In a report published Friday, Deutsche Bank analyst Paul Ginocchio initiated coverage on

with a Buy rating and $65.00 price target. In the report, Deutsche Bank noted, “We like the low volatility of Verisk's high-single digit organic growth, its superb returns on capital, and its strong FCF conversion of earnings. Crucial to the Verisk story is the healthcare opportunity; it is only 15% of revenue today but will increase due to its approx. 30% organic growth rate. Verisk trades at a premium to peers, but we think this is more than justified by the company's operating results. Our $65 price target is based on 22x ‘14E P/FCF, in-line with high-growth info services peers and Verisk's current multiple.” Verisk Analytics closed on Thursday at $58.65.