Market Overview

UPDATE: Miller Tabak Downgrades ACE Limited Following Recent Influx of Capital, Premium Valuation

Share:

In a report published Thursday, Miller Tabak + Co. analyst Tom Mitchell downgraded the rating on ACE Limited (NYSE: ACE) from Buy to Hold, and raised the price target from $91.50 to $96.35.

In the report, Miller Tabak + Co. noted, “Given a recent influx of capital into the worldwide property/casualty industry, we believe a sustained strong up-cycle in rates is not in the cards for 2014. Meanwhile, the industry -- and ACE -- has so far enjoyed very modest catastrophe claims costs in 2013, a condition which both enhances current earnings and promises the potential for more new capital to enter the market and, in some lines, stimulate the migration of rate competition from ‘CAT' coverages to other underwriting areas. These market conditions strongly suggest to us that ACE, having achieved a premium equity valuation vs. its peers, will trend toward matching the group's overall returns unless or until events causing more severe underwriting losses draw fresh attention to ACE's superior underwriting disciplines.”

ACE Limited closed on Wednesday at $94.13.

Latest Ratings for ACE

DateFirmActionFromTo
Jan 2016UpgradesMarket PerformOutperform
Nov 2015AssumesOverweight
Oct 2015MaintainsHold

View More Analyst Ratings for ACE
View the Latest Analyst Ratings

Posted-In: Miller Tabak + Co. Tom MitchellAnalyst Color Downgrades Analyst Ratings

 

Related Articles (ACE)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
MANMaintains96.0
INTCMaintains57.0
CHNGInitiates Coverage On19.0
BRMaintains150.0
SLBMaintains41.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

UPDATE: FIG Partners Initiates Coverage on F.N.B. Corporation on Valuation Considerations

UPDATE: Wellington Shields Initiates Coverage on Freeport-McMoRan on Solid Long-Term Fundamentals, Attractive Valuation