Send to a Friend Share

Deutsche Bank Downgrades Travelers (TRV) to Sell; Concerns Regarding Soft Market Growth

October 26, 2010 7:28 AM EDT
TRV Hot Sheet
Rating Summary:
    7 Buy, 8 Hold, 1 Sell

Rating Trend: Down 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


Discover Wall Street's best ratings calls with the pros - Upgrade to Ratings Insider Elite. Free Trial!

You May Also Be Interested In


Related Categories

Downgrades

Related Entities

Deutsche Bank, Earnings

Add Your Comment





Follow StreetInsider.com On Twitter