Wells Fargo Cuts Price Valuation Range and Estimates on Arch Capital (ACGL), Factors in Catastrophe Losses
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Price: $52.26 -0.42%
Rating Summary:
1 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
1 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade ACGL Now!
Wells Fargo is reiterating its Outperform rating on shares of Arch Capital (NASDAQ: ACGL), but is lowering its price valuation range from $39-$41 to $37-$39.
The company released its Q2 catastrophe losses in the range of $90-110 million, or about $0.67-0.82 per share. The company did not break down the cost of each event.
The firm was only calculating $15 million in catastrophe losses in the second quarter, but as a result of it being well above that, is lowering its Q2 EPS estimate from $0.81 to $0.12 and its FY11 from $2.35 to $1.65, while maintaining its FY12 of $3.33.
An analyst at Wells Fargo comments, "In the current soft property & casualty pricing environment, we favor ACGL shares, since the company has the capacity and inclination to manage the pricing cycle by shrinking its capital."
For more ratings news on Arch Capital click here and for the rating history of Arch Capital click here.
Shares of Arch Capital closed at $32.64 yesterday, with a 52 week range of $31.51-$105.61.
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The company released its Q2 catastrophe losses in the range of $90-110 million, or about $0.67-0.82 per share. The company did not break down the cost of each event.
The firm was only calculating $15 million in catastrophe losses in the second quarter, but as a result of it being well above that, is lowering its Q2 EPS estimate from $0.81 to $0.12 and its FY11 from $2.35 to $1.65, while maintaining its FY12 of $3.33.
An analyst at Wells Fargo comments, "In the current soft property & casualty pricing environment, we favor ACGL shares, since the company has the capacity and inclination to manage the pricing cycle by shrinking its capital."
For more ratings news on Arch Capital click here and for the rating history of Arch Capital click here.
Shares of Arch Capital closed at $32.64 yesterday, with a 52 week range of $31.51-$105.61.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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