Nomura Securities Starts Arch Capital (ACGL) at Neutral

Nomura Securities initiates coverage on Arch Capital (NASDAQ: ACGL) with a Neutral rating and a price target of $70.00.

Analyst Clifford Gallant commented, "Arch Capital Group is a very good company as demonstrated by 10 years of annual compound book value growth of over 17% since 2002 with relatively low volatility. Long before the popular kids were doing it, Arch was building a franchise with primary commercial customers, getting at the source of business and away from commodity-like lines. However, the strength of management, in our view, is not so much foresight but in holding strong “common sense” views of how a business should be run and how its profits should be made. We expect Arch to outmaneuver peers in the long term, be less mistake-prone, and in the end, expand its value as measured in book value growth. However, at 1.6x book, the shares are at an all-time high valuation and a strong premium to peers. Thus, we initiate coverage with a Neutral rating and $70 target price."

For an analyst ratings summary and ratings history on Arch Capital click here. For more ratings news on Arch Capital click here.

Shares of Arch Capital closed at $74.46 yesterday.

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