UPDATE: Keefe, Bruyette & Woods Initiates Coverage On James River Group On Multiple Positive Factors

In a report published Tuesday, Keefe, Bruyette & Woods analyst Meyer Shields initiated coverage on James River Group Holdings Ltd JRVR with an Outperform rating and $26.50 price target. In the report, Keefe, Bruyette & Woods noted, “We believe that James River has a high quality specialty business, a growing and valuable emerging fee business, and a strong management team with a superb record of delivering shareholder value. James River has a history of conservative excess and surplus lines reserving, and we believe that its current reserves include considerable redundancies, which should provide protection if loss cost trends pick up. While the shares are not meaningfully discounted relative to peers, we believe that the current valuation represents an attractive entry point with potential for multiple expansion. We are initiating coverage with an Outperform rating and a $26.50 price target.” James River Group closed on Monday at $22.82.