Goldman Sachs Downgrades Everest Re Group (RE) to Neutral

Goldman Sachs downgraded Everest Re Group (NYSE: RE) from Buy to Neutral with a price target of $140.00 (from $150.00) saying reinsurance pressures may trump insurance improvement.

"We move to Neutral from Buy on shares of Everest following a sustained period of outperformance," analyst Michael Nannizzi comments. "Over the past year, the company has made progress on profitability improvement initiatives in the insurance segment, accretively deployed capital via share buybacks below book value, and seen both book value increase and the stock’s discounted valuation improve."

He added, "While RE is predominantly a reinsurer, our thesis had hinged upon rate and business mix-driven margin improvement in its primary insurance segment. Given the influx of capital in the reinsurance space and our more cautious view on the reinsurance segment given price declines in recent renewals, we think a Neutral rating is more appropriate at this time."

For an analyst ratings summary and ratings history on Everest Re Group click here. For more ratings news on Everest Re Group click here.

Shares of Everest Re Group closed at $128.85 yesterday.

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