In a report released yesterday, Michael Zaremski from BMO Capital maintained a Buy rating on Travelers Companies, with a price target of $297.00.
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Michael Zaremski has given his Buy rating due to a combination of factors that highlight the strong performance and potential of Travelers Companies. The company reported a significant earnings per share (EPS) beat, with core EPS coming in at $6.51 compared to the consensus estimate of $3.65, indicating robust financial health. Additionally, the company’s core loss ratios for both Business Insurance and Bond & Specialty segments surpassed expectations, showcasing effective risk management and operational efficiency.
Moreover, the Home Insurance segment is experiencing a ‘Once in a Generation’ hard market, with a substantial margin beat on the core loss ratio, maintaining steady pricing. The net investment income guidance has also been revised upwards, contributing positively to forward EPS revisions. Although net premiums written growth was below consensus, the overall profitability remains strong, and the company is well-positioned for future improvements in personal lines results due to strategic rate and corrective actions. These factors collectively support Zaremski’s optimistic outlook on Travelers Companies’ stock.
According to TipRanks, Zaremski is a 4-star analyst with an average return of 10.4% and a 67.05% success rate. Zaremski covers the Financial sector, focusing on stocks such as Progressive, Brown & Brown, and Travelers Companies.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $320.00 price target.