UPDATE: Deutsche Bank Upgrades Cincinnati Financial (CINF) to Hold

(Updated - June 16, 2020 8:03 AM EDT)

(updating comment)

Deutsche Bank analyst David Begleiter upgraded Cincinnati Financial (NASDAQ: CINF) from Sell to Hold with a price target of $63.00 (from $64.00).

The analyst comments "We are upgrading CinFin to Hold from Sell. Shares of CinFin have materially underperformed since both the COVID broader market sell-off (CINF -44% versus commercial peers -26% and S&P -8%) and insurance 1Q20 earnings (CINF -25% versus commercial peers +6% and S&P +10%). The majority of the underperformance appears to have been driven around 1Q20 results when the company confirmed our assertion into the print that primary policies did not appear to have a virus exclusion. Our concerns on the optics of this omission from the "standard" policy form appear to have largely played out. We continue to believe the lack of a virus exclusion will be an overhang for CinFin shares. Further, we anticipate the plaintiff's bar will more heavily target those primary underwriters that do not have a virus exclusion – which may lead to outsized loss exposure for CinFin when compared to commercial lines peers."

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 $61.94 yesterday.

You May Also Be Interested In

• Keefe, Bruyette & Woods Upgrades Trustmark (TRMK) to Outperform
• Lithia Motors (LAD) PT Lowered to $310 at Craig-Hallum
• BOK Financial (BOKF) PT Raised to $97 at DA Davidson