Nomura Securities Starts Hartford Financial Services (HIG) at Neutral

Nomura Securities initiates coverage on Hartford Financial Services (NYSE: HIG) with a Neutral rating and a price target of $46.00.

Analyst Clifford Gallant commented, "We initiate coverage of the Hartford Financial Services Group (HIG) with a Neutral rating. HIG has good underlying franchises, a solid balance sheet, and a sound strategy, but in our view, for the shares to earn a higher valuation, ROE expansion is required. Spurring growth through meaningful product differentiation takes time; Talcott’s run-off will remain a ROE drag; commercial lines are experiencing pricing pressures and there is potential for rising auto claims frequency. Given these headwinds, we expect high-single-digit ROE through at least 2017 and view the shares as appropriately valued at 1.0x 12-month forward book, our $46 target. While HIG might represent good value for patient investors, the challenge will be having the patience for the company’s successful execution to translate into higher valuation."

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

Shares of Hartford Financial Services closed at $39.08 yesterday.

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