BMO Capital analyst Tom Mackinnon maintained a Buy rating on Fairfax Financial Holdings (FRFHF – Research Report) on February 14 and set a price target of C$2,400.00.
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Tom Mackinnon has given his Buy rating due to a combination of factors including Fairfax Financial Holdings’ strong financial performance in Q4 2024, where the company reported significantly higher earnings per share than expected. This positive outcome was driven by better-than-expected underwriting income, robust interest and dividend income, and impressive earnings from non-insurance companies.
Furthermore, the company demonstrated strong top-line growth and better net investment results than anticipated, which included gains from the re-measurement of assets. Despite some anticipated challenges like potential catastrophic losses, the firm maintains a conservative target price, reflecting confidence in its future return on equity. The strong liquidity position and promising growth prospects in earnings per share and book value per share further support the Buy recommendation.
In another report released on February 3, National Bank also maintained a Buy rating on the stock with a C$2,600.00 price target.
FRFHF’s price has also changed moderately for the past six months – from $1118.740 to $1463.918, which is a 30.85% increase.