Chubb (CB – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Bob Huang from Morgan Stanley maintained a Hold rating on the stock and has a $280.00 price target.
Bob Huang has given his Hold rating due to a combination of factors affecting Chubb’s financial outlook. While Chubb’s reserving position is robust, there are concerns about the impact of social inflation on certain liabilities. Specifically, the Other Liability Occurrence and Commercial Auto Liability lines have experienced significant adverse developments, which could pose challenges in the near term.
Despite these issues, Chubb’s diversified business model remains a strength, providing some balance against the pressures from social inflation. However, the uncertainty surrounding tariff impacts and the ongoing developments in specific liability lines suggest caution. As a result, while Chubb is taking prudent steps to manage its reserves, these factors contribute to the decision to maintain a Hold rating.
In another report released on April 11, Jefferies also maintained a Hold rating on the stock with a $308.00 price target.
Based on the recent corporate insider activity of 85 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CB in relation to earlier this year.