MKM Partners Raises price Target on Cincinnati Financial (CINF) to $80.00; Reiterates Buy

MKM Partners reiterated a Buy rating on Cincinnati Financial (NASDAQ: CINF), and raised the price target to $80.00 (from $70.00), after meeting with management at investor events.

Analyst Harry Fong commented, "We were with management of Cincinnati Financial this week at several investor meetings and came away feeling better about the company’s near and longer term prospects. Cincinnati Financial has an enviable long term underwriting record that will likely remain in place even as competitive pressures mount for the industry. Its strong balance sheet should also provide ample support for its newer growth initiatives. The shares of the company trading at 1.7x trailing GAAP book value are not cheap, but we believe the momentum it now has will allow it to continue to outperform and therefore, we maintain our Buy rating, but increase our price target to $80 from $70, based on a 1.9x multiple on our 2017 estimated book value. While the price to book multiple is rich compared to its recent history, the near term opportunities could allow for faster book value growth than our model calls for."

For an analyst ratings summary and ratings history on Cincinnati Financial click here. For more ratings news on Cincinnati Financial click here.

Shares of Cincinnati Financial closed at $70.15 yesterday.

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