Deutsche Bank Downgrades Reinsurance Group of America (RGA) to Hold

October 19, 2016 7:48 AM EDT
Get Alerts RGA Hot Sheet
Price: $124.99 +0.14%

Rating Summary:
    1 Buy, 14 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Deutsche Bank downgraded Reinsurance Group of America (NYSE: RGA) from Buy to Hold with a price target of $112.00 (from $108.00). The downgrade was tied to valuation.

Analyst Yaron Kinar said, "We are downgrading our recommendation to Hold. The 30% YTD return on RGA shares far exceeds the 7% returns of the life insurance group and 6% returns for the S&P 500 and RGA shares' valuation (1.2x P/B; 11.3x P/E) relative to both the group and market is above historical averages at a time when the defensive play may have run its course. We continue to expect mid-to-high single-digit top-line growth and stable margins but believe that those are more appropriately priced in at this time, noting 4 upwards revisions and a 6% increase to FY16 Consensus over the past 90 days. We raise our TP to $112 to reflect a one-quarter roll forward and market stabilization."

For an analyst ratings summary and ratings history on Reinsurance Group of America click here. For more ratings news on Reinsurance Group of America click here.

Shares of Reinsurance Group of America closed at $110.03 yesterday.

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