Travelers Companies Will Continue To Rally, Analyst Says

Travelers Companies Inc.’s TRV stock is likely to continue outperforming the S&P 500 and Dow 30 in the near term, according to Raymond James.

The Travelers Companies Analyst: Gregory Peters upgraded the rating for Travelers Companies from Market Perform to Strong Buy, while establishing a price target of $185.

The Travelers Companies Thesis: The company reported better-than-expected results for the second quarter and raised the after-tax fixed net interest income guidance for the third and fourth quarters, Peters said in the upgrade note.

“The Business Insurance (BI) segment’s renewal pricing has trended above loss costs for 11 out of the last 13 quarters which when coupled with TRV’s advanced risk selection tools, should position the company for further improvements in the underlying margins,” the analyst wrote.

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“We expect TRV to implement additional auto and homeowners’ insurance rate increases over the next 12 months as an offset to the current inflationary pressures which should position the personal insurance (PI) segment to report y/y improvement in the underlying CR beginning in 2Q23,” he added.

TRV Price Action: Shares of Travelers Companies had risen by 2.49% to $160.46 at the time of publication Monday.

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