UBS Maintains a 'Neutral' on Greenlight Capital (GLRE); Lowering Estimates and Price Target

UBS maintains a 'Neutral' on Greenlight Capital (NASDAQ: GLRE) price target lowered from $29 to $23.50.

UBS analyst says, "We are reducing our annual investment portfolio return assumption to 12% from prior 15%. Between 2005 and 2010, the average annual investment portfolio return was 11.6%, ranging from a gain of 32.1% in 2009 to a loss of 17.6% in 2008. The investment portfolio is down 4.2% year-to-date as of July 31, 2011, and on its conference call on August 10, the company commented that the portfolio was roughly flat for the quarter (it was up 1% in July)."

"We are reducing our full-year 2011 EPS estimate from $0.55 to a loss of ($0.70) due to our expectation of flat investment performance in 3Q11 and a (2.5%) investment loss for 2011. We are reducing our 2012 EPS estimate to $3.80 (prior $4.90) and 2013 EPS estimate to $4.50 (prior $5.95) due to the lower 12% investment return assumption. GLRE’s top five holdings as of July 31 were Apple (Nasdaq: AAPL, gold, Microsoft (Nasdaq: MSFT), Pfizer (NYSE: PFE), and VOD.LN."

For more ratings news on Greenlight Capital click here and for the rating history of Greenlight Capital click here.

Shares of Greenlight Capital closed at $21.52 yesterday.

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