Deutsche Bank Upgrades XL Group plc (XL) to Hold

Deutsche Bank upgraded XL Group plc (NYSE: XL) from Sell to Hold with a price target of $35.00 (from $31.00).

Analyst Joshua Shanker said, "While we regarded the sale of the life reinsurance business as ultimately deleterious to ROE, that catalyst is now part of the past. XL appears to earning about an 7-8% ROE, which we believe is likely near or just under its cost of equity capital. P&C stocks have rallied in the past month behooving us to increase our valuation basis to 1.0x book. This valuation target multiple expansion switches our target price to the modestly positive from the modestly negative, and we upgrade our rating on XL shares to Hold."

For an analyst ratings summary and ratings history on XL Group plc click here. For more ratings news on XL Group plc click here.

Shares of XL Group plc closed at $33.12 yesterday.

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