Barclays Maintains an 'Equalweight' on The Hanover Insurance Group (THG); Investor Day Takeaways: 2012 ROE In Line With Our Outllok; Headwinds Persist
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Price: $223.16 +0.02%
Rating Summary:
9 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
9 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Equalweight' on The Hanover Insurance Group (NYSE: THG) price target of $40.00.
Barclays analyst says, "The tone of Hanover's investor day was mixed. The company expects to generate an ROE of about 8% in 2012 (in line with our outlook), which is below its cost of capital. However, THG was upbeat about P&C market conditions and expects pricing to continue to improve...THG expects to achieve an ROE of 11-13% over the long term driven by a more balanced and diversified business mix between personal, commercial, and specialty, although this target appears optimistic to us."
"THG trades at 0.67x 3Q11 BV, which is below peers and likely reflects THG's uneven performance as well as risks associated with the Chaucer acquisition. THG trades at 9.2x our 2012 EPS estimate of $4.00. THG's ROE is expected to remain below its cost of capital, and the Chaucer acquisition increases its exposure to high severity business and expands THG's business outside its core personal lines and small/middle market commercial lines."
For an analyst ratings summary and ratings history on The Hanover Insurance Group click here. For more ratings news on The Hanover Insurance Group click here.
Shares of The Hanover Insurance Group closed at $36.19 yesterday.
Barclays analyst says, "The tone of Hanover's investor day was mixed. The company expects to generate an ROE of about 8% in 2012 (in line with our outlook), which is below its cost of capital. However, THG was upbeat about P&C market conditions and expects pricing to continue to improve...THG expects to achieve an ROE of 11-13% over the long term driven by a more balanced and diversified business mix between personal, commercial, and specialty, although this target appears optimistic to us."
"THG trades at 0.67x 3Q11 BV, which is below peers and likely reflects THG's uneven performance as well as risks associated with the Chaucer acquisition. THG trades at 9.2x our 2012 EPS estimate of $4.00. THG's ROE is expected to remain below its cost of capital, and the Chaucer acquisition increases its exposure to high severity business and expands THG's business outside its core personal lines and small/middle market commercial lines."
For an analyst ratings summary and ratings history on The Hanover Insurance Group click here. For more ratings news on The Hanover Insurance Group click here.
Shares of The Hanover Insurance Group closed at $36.19 yesterday.
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