UPDATE: UBS Downgrades Blue Capital Reinsurance (BCRH) to Sell
- Wall Street set to open flat as investors test rally
- Western Digital (WDC) Raises Q2 Outlook
- Biotech, Pharma Stocks Weaker Amid Trump Comments on Lower Drug Prices
- Oil slips on doubts output cut will end global glut
- Pre-Open Stock Movers 12/07: (EMKR) (PLAY) (WDC) Higher; (SIGM) (AVAV) (BLUE) Lower (more...)
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
(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.
Shares of Blue Capital Reinsurance closed at $19.10 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wedbush Raises Price Target on Francesca's (FRAN) Following 3Q Report
- Cowen Downgrades Nike (NKE) to Neutral; Sees Lower Guidance
- Credit Suisse Downgrades Kellogg (K) to Neutral
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesUBS, Earnings
Sign 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!