UPDATE: Keefe, Bruyette & Woods Upgrades Argo Group On Compelling Value For Earnings Potential

In a report published Thursday, Keefe, Bruyette & Woods analyst Brett Shirreffs upgraded the rating on Argo Group International Holdings, Ltd. AGII from Market Perform to Outperform, and raised the price target from $60.00 to $64.00. In the report, Keefe, Bruyette & Woods noted, “We are upgrading the shares of AGII to Outperform from Market Perform due to what we view as an attractive entry point for long-term investors. While Argo has already showed substantial margin expansion and earnings growth, we believe that the company has the potential to continue to improve its ROE over the next several years, regardless of external market factors. In our view, the shares' discount to book value (and peer multiples) provides opportunity for further valuation expansion over time, and also offers some cushion should industry valuations come under pressure. Raising estimates and price target.” Argo Group closed on Wednesday at $54.15.