William Blair analyst Adam Klauber has maintained their bearish stance on CB stock, giving a Sell rating on October 13.
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Adam Klauber has given his Sell rating due to a combination of factors impacting Chubb’s future earnings potential. Despite Chubb’s strong third-quarter performance, which exceeded consensus expectations, Klauber anticipates a moderation in earnings growth. This outlook is driven by the expectation that underwriting results will decline from their peak levels as pricing becomes less favorable and losses increase across Chubb’s property and casualty segments.
Additionally, while Chubb experienced record investment income, Klauber foresees a slowdown in net investment income growth due to declining interest rates and slower premium growth. These elements suggest that Chubb’s earnings per share are likely to plateau over the coming years, prompting the maintenance of an Underperform rating.
Klauber covers the Financial sector, focusing on stocks such as Progressive, Baldwin Insurance Group, and Chubb. According to TipRanks, Klauber has an average return of 1.8% and a 43.71% success rate on recommended stocks.
In another report released on October 13, Bank of America Securities also maintained a Sell rating on the stock with a $279.00 price target.