Maiden Holdings (MHLD) Price Target Lifted at Compass Point
Tweet
Share
E-mailGet Alerts MHLD Hot Sheet
Price: $2.18 --0%
Rating Summary:
2 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 8 | New: 14
Rating Summary:
2 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 8 | New: 14
Join SI Premium – FREE
Compass Point analyst Ken Billingsley reiterated a Buy rating on Maiden Holdings (NASDAQ: MHLD) and raised his price target from $14.50 to $16 following a reserve analysis review.
Billingsley said, "We have lowered our downside risk assumptions on MHLD shares due to our expectation for future reserve redundancies, lower risk growth as compared to reinsurance peers, and reduced exposure to CAT events. MHLD is one of the few reinsurers that has traded higher year to date and we expect more upside before year end. Our reserve analysis shows that reserves could be 6.4% redundant, which undervalues tangible BVPS by approximately $0.92 per share. Additionally, MHLD's premium concentration risk with AmTrust Financial Services, Inc. (AFSI-Neutral, $37 PT) should prove to be an asset in the near term versus its peers. The company's focus on quota-share relationships and avoidance of CAT risks should allow for more predictable earnings versus its peers as well. And with a dividend yield of 3.1% that exceeds the peer group, we believe investors should continue to see much more upside in MHLD shares."
For an analyst ratings summary and ratings history on Maiden Holdings click here. For more ratings news on Maiden Holdings click here.
Shares of Maiden Holdings closed at $12.43 yesterday.
Billingsley said, "We have lowered our downside risk assumptions on MHLD shares due to our expectation for future reserve redundancies, lower risk growth as compared to reinsurance peers, and reduced exposure to CAT events. MHLD is one of the few reinsurers that has traded higher year to date and we expect more upside before year end. Our reserve analysis shows that reserves could be 6.4% redundant, which undervalues tangible BVPS by approximately $0.92 per share. Additionally, MHLD's premium concentration risk with AmTrust Financial Services, Inc. (AFSI-Neutral, $37 PT) should prove to be an asset in the near term versus its peers. The company's focus on quota-share relationships and avoidance of CAT risks should allow for more predictable earnings versus its peers as well. And with a dividend yield of 3.1% that exceeds the peer group, we believe investors should continue to see much more upside in MHLD shares."
For an analyst ratings summary and ratings history on Maiden Holdings click here. For more ratings news on Maiden Holdings click here.
Shares of Maiden Holdings closed at $12.43 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Park National (PRK) PT Raised to $130 at Keefe, Bruyette & Woods
- JPMorgan on Tesla (TSLA): 'See Risk of Further Negative Earnings Revisions'
- Root, Inc. (ROOT) PT Raised to $70 at Keefe, Bruyette & Woods
Create E-mail Alert Related Categories
Analyst Comments, Analyst PT ChangeRelated Entities
Dividend, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
