UPDATE: MKM Partners Starts Cincinnati Financial (CINF) at Buy

(Updated - September 2, 2015 11:42 AM EDT)

MKM Partners initiated coverage on Cincinnati Financial (NASDAQ: CINF) with a Buy rating and a price target of $60. Analyst Harry Fong thinks the company has an advantage in today's softer insurance market.

"We believe Cincinnati Financial is exactly the kind of company that will perform well in the current underwriting environment given its very strong agency relationships as it gradually expands its underwriting focus," said Fong.

"In an environment where insurers are finding it increasingly more difficult to earn a good return, Cincinnati Financial embodies the characteristics of a company that we believe can outperform its peers. Its strong ties to its agency force should allow it to gain better new business prospects than the average insurer. The company also has one of the best long-term records in the industry (12% average operating ROE for last 10 years) and has increased its dividend for 54 consecutive years, a claim only nine publicly traded companies can make. In addition, it has experienced 26 consecutive years of net favorable loss reserve development that reflects a very conservative approach in setting loss reserves," added the analyst.

For an analyst ratings summary and ratings history on Cincinnati Financial click here. For more ratings news on Cincinnati Financial click here.

Shares of Cincinnati Financial closed at $50.96 yesterday.

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