UPDATE: Credit Suisse Upgrades Hartford Financial Services (HIG) to Outperform
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Credit Suisse analyst Michael Zaremski upgraded Hartford Financial Services (NYSE: HIG) from Neutral to Outperform with a price target of $82.00 (from $48.00).
The analyst comments "We are upgrading shares of Hartford to Outperform based on our view that Chubb would be willing to pay a price closer to ~$81.50 (1.60x book value), representing 20% upside to the current share price, and a greater ~25% increase from Chubb’s initial $65 offer. We estimate this $81.50 price would afford Chubb a healthy low double-digit ~13% EPS accretion level (11% when taking into account over $100 million of deal-related amortization expenses, which Chubb currently strips out of its definition of “operating” income), and accelerating its strategic goal of entering the less competitive and highly profitable small-to-medium enterprise P&C space."
Shares of Hartford Financial Services closed at $68.15 yesterday.
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