Bank of America Securities analyst Joshua Shanker reiterated a Buy rating on Renaissancere Holdings (RNR – Research Report) today and set a price target of $440.00.
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Joshua Shanker has given his Buy rating due to a combination of factors that highlight the resilience and potential of Renaissancere Holdings. Despite facing significant challenges such as the LA wildfires, which resulted in substantial claims, the company managed to maintain its financial stability and even grow its book value. This demonstrates the effectiveness of its risk management strategies and the strength of its earnings power, which is further supported by consistent fee and investment income.
Moreover, Shanker points out that the company’s income statement may not fully reflect its true earnings potential due to its complexity. By focusing on the earnings relevant to common shareholders, a clearer picture of significant earnings power emerges. Additionally, the company’s history of share repurchases and the potential for double-digit EPS growth through share reduction contribute to the positive outlook. The raised price objective to $440, along with the belief that concerns over reinsurance pricing trends may be temporary, further solidifies the Buy rating.
In another report released on April 29, KBW also maintained a Buy rating on the stock with a $282.00 price target.