Deutsche Bank Downgrades Travelers (TRV) to Sell; Concerns Regarding Soft Market Growth
TRV Hot Sheet
Rating Summary:7 Buy, 8 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Deutsche Bank downgrades Travelers (NYSE: TRV) to Sell.
Deutsche analyst says, "Travelers' 3Q10 operating EPS of $1.81 appears outsized, driven primarily by light catastrophe weather and pre-tax net prior-year favorable reserve development, both of which we do not forecast to persist. As the market has rallied, the forward-looking market-earnings multiple from which we derive Travelers' target price has contracted. Despite pairing down our 2011 loss ratio estimate slightly, 2011 estimated EPS of $5.70 in harmony with year-ahead tangible BVPS of $49 cannot support the current valuation. Our target price remains $51."
To see all the upgrades/downgrades on shares of TRV, visit our Analyst Ratings page.
Shares finished trading at $55.59 yesterday and the 52-wk range is $47.35 - 55.90
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Deutsche analyst says, "Travelers' 3Q10 operating EPS of $1.81 appears outsized, driven primarily by light catastrophe weather and pre-tax net prior-year favorable reserve development, both of which we do not forecast to persist. As the market has rallied, the forward-looking market-earnings multiple from which we derive Travelers' target price has contracted. Despite pairing down our 2011 loss ratio estimate slightly, 2011 estimated EPS of $5.70 in harmony with year-ahead tangible BVPS of $49 cannot support the current valuation. Our target price remains $51."
To see all the upgrades/downgrades on shares of TRV, visit our Analyst Ratings page.
Shares finished trading at $55.59 yesterday and the 52-wk range is $47.35 - 55.90
Discover Wall Street's best ratings calls with the pros - Upgrade to Ratings Insider Elite. Free Trial!
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