UPDATE: UBS Downgrades Blue Capital Reinsurance (BCRH) to Sell

November 23, 2016 6:53 AM EST
Get Alerts BCRH Hot Sheet
Price: $18.85 +0.80%

Rating Summary:
    1 Buy, 3 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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(Updated - November 23, 2016 10:50 AM EST)

UBS downgraded Blue Capital Reinsurance (NYSE: BCRH) from Buy to Sell with a price target of $17.00 (from $18.00). Analyst Brian Meredith said rising yields make it less attractive.

"With yields rising since the U.S. election, we believe that BCRH will become less attractive as an alternative yield play. BCRH's annual payout of 90% of earnings via dividends has resulted in a double-digit dividend yield the last two years, making it attractive in a low interest rate environment despite the volatility inherent in its business. We expect a more limited special dividend in 1Q17, lowering the 2017 total estimated dividend to $1.13 and the yield to 5.9%, given loss activity in 2016. BCRH sees minimal impact on its returns from higher yields, making other yield-focused assets more attractive," said Meredith.

For an analyst ratings summary and ratings history on Blue Capital Reinsurance click here. For more ratings news on Blue Capital Reinsurance click here.

Shares of Blue Capital Reinsurance closed at $19.10 yesterday.

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