Evercore ISI Upgrades Reinsurance Group of America (RGA) to Outperform, 'We expect top line trends to remain better'

Evercore ISI analyst Thomas Gallagher upgraded Reinsurance Group of America (NYSE: RGA) from In Line to Outperform with a price target of $167.00 (from $148.00).

The analyst comments "1. Our recent checks on CDC mortality data in the US and COVID statistics globally suggest mortality trends remain pretty favorable in 4Q, 2. We believe recent results and outlooks from its major life reinsurance competitors (mainly European) are constructive, 3. We are above consensus for 2023 and our initial 2024 EPS estimates, 4. We expect top line trends to remain better than most primary life insurers over the next few years, 5. We see RGA as a relative winner from the new LDTI accounting standards coming in 2023 with a modest uplift to earnings but more importantly reduced EPS volatility – and above average earnings volatility has been a primary risk factor for the stock over the last decade, and 6. We see room for valuation uplift of the shares given that it’s cheap on 3 key measures (vs. the peer group, the S&P 500 index and its own history), especially when factoring in the prior points on fundamentals."

For an analyst ratings summary and ratings history on Reinsurance Group of America click here. For more ratings news on Reinsurance Group of America click here.

Shares of Reinsurance Group of America closed at $142.03 yesterday.

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