Joshua Shanker, an analyst from Bank of America Securities, reiterated the Buy rating on Cincinnati Financial (CINF – Research Report). The associated price target is $168.00.
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Joshua Shanker has given his Buy rating due to a combination of factors including Cincinnati Financial’s strong core underwriting results in the fourth quarter of 2024. The company’s operating earnings per share of $3.14 significantly surpassed both Shanker’s prediction and the consensus estimate, driven by better-than-expected core loss ratios and lower catastrophe losses. These results highlight the company’s robust performance, particularly in the Commercial Property and Homeowners’ segments, where attritional loss ratios showed notable improvement.
Additionally, Cincinnati’s conservative reserving practices, coupled with reserve releases in commercial casualty, align with a cautious but positive outlook despite the industry’s concerns over rising loss trends in areas like commercial auto. Shanker’s price objective of $168 reflects the potential for material upside, supported by a sum-of-the-parts valuation that remains attractive even as peer group multiples are adjusted. The overall financial health and strategic management of Cincinnati Financial underpin Shanker’s confidence in a Buy rating.