Barclays Maintains an 'Equalweight' on Hartford Financial Services (HIG); No Rebound Expected in 2012
Tweet
Share
E-mailGet Alerts HIG Hot Sheet
Price: $138.02 +0.15%
Rating Summary:
18 Buy, 16 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
18 Buy, 16 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Barclays maintains an 'Equalweight' on Hartford Financial Services (NYSE: HIG) price target of $21.00.
Barclays analyst says, "Overall, HIG provided a realistic but challenged assessment for 2012 results. HIG's guidance of an 8% ROE is consistent with our view, but this result is significantly below its 12% cost of capital driven by runoff business. On a positive note, commercial P&C rate increases are accelerating. In 2012, HIG's focus is on generating profitable growth in its P&C business, optimizing the capital structure, and exploring strategic alternatives for run-off businesses. We are concerned workers' compensation reserve strengthening could persist, which would be a drag
on earnings."
"We expect HIG to generate operating EPS of $3.25 (consensus: $3.52) and an 8% ROE in 2012 (boosted by 50bps from the new DAC accounting change), which is better than 5% in 2011, but remains below the sector average. Also, P&C profitability has stalled recently, which is a cause for concern."
For an analyst ratings summary and ratings history on Hartford Financial Services click here. For more ratings news on Hartford Financial Services click here.
Shares of Hartford Financial Services closed at $17.20 yesterday.
Barclays analyst says, "Overall, HIG provided a realistic but challenged assessment for 2012 results. HIG's guidance of an 8% ROE is consistent with our view, but this result is significantly below its 12% cost of capital driven by runoff business. On a positive note, commercial P&C rate increases are accelerating. In 2012, HIG's focus is on generating profitable growth in its P&C business, optimizing the capital structure, and exploring strategic alternatives for run-off businesses. We are concerned workers' compensation reserve strengthening could persist, which would be a drag
on earnings."
"We expect HIG to generate operating EPS of $3.25 (consensus: $3.52) and an 8% ROE in 2012 (boosted by 50bps from the new DAC accounting change), which is better than 5% in 2011, but remains below the sector average. Also, P&C profitability has stalled recently, which is a cause for concern."
For an analyst ratings summary and ratings history on Hartford Financial Services click here. For more ratings news on Hartford Financial Services click here.
Shares of Hartford Financial Services closed at $17.20 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
- Movano (MOVE) Misses Q2 EPS by 195c
- Hydrofarm Holdings Group, Inc. (HYFM) Misses Q2 EPS by 134c
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Barclays, EarningsSign 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!
