FBR Capital Maintains an 'Outperform' on SeaBright Holdings (SBX); Q1 Bottom Line Falls Short of Consensus, Still See More Upside Despite Challenges
Tweet
Share
E-mailGet Alerts SBX Hot Sheet
Price: $11.11 --0%
Rating Summary:
1 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
FBR Capital maintains an 'Outperform' on SeaBright Holdings (NYSE: SBX), PT $12.
FBR analyst says, "...Despite the worsening underwriting ratios compared to a year ago, we are optimistic about the company's outlook, driven in large part by the reserve position, which implies only a modest amount of further reserve strengthening. In general, until a major market hardening, investors should not expect an adequate ROE from SeaBright. The market, however, is moving in the right direction, as the employment picture is brightening, prices are increasing (+9.4% across the entire book, +14.8% in Calif.), and many other factors are helping on the margin. Given the still-difficult environment, we believe an operating breakeven is not bad at all. With valuation of 0.65x book value, we see more upside than downside, despite the challenges."
"We are reducing our 2011 operating EPS estimate to $0.20 from $0.30 and decreasing our 2012 forecast to $0.30 from $0.40 to account for lower investment income and a higher combined ratio."
For more ratings news on SeaBright Holdings click here and for the rating history of SeaBright Holdings click here.
Shares of SeaBright Holdings closed at $10.19 yesterday.
FBR analyst says, "...Despite the worsening underwriting ratios compared to a year ago, we are optimistic about the company's outlook, driven in large part by the reserve position, which implies only a modest amount of further reserve strengthening. In general, until a major market hardening, investors should not expect an adequate ROE from SeaBright. The market, however, is moving in the right direction, as the employment picture is brightening, prices are increasing (+9.4% across the entire book, +14.8% in Calif.), and many other factors are helping on the margin. Given the still-difficult environment, we believe an operating breakeven is not bad at all. With valuation of 0.65x book value, we see more upside than downside, despite the challenges."
"We are reducing our 2011 operating EPS estimate to $0.20 from $0.30 and decreasing our 2012 forecast to $0.30 from $0.40 to account for lower investment income and a higher combined ratio."
For more ratings news on SeaBright Holdings click here and for the rating history of SeaBright Holdings click here.
Shares of SeaBright Holdings closed at $10.19 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fiserv (FISV) PT Lowered to $60 at Freedom Broker
- McGraw Hill (MH) PT Raised to $15 at UBS
- UBS Reiterates Buy Rating on Hilton Worldwide (HLT)
Create E-mail Alert Related Categories
Analyst CommentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
