Axis Capital downgraded to Neutral from Buy at BofA

BofA downgraded Axis Capital (AXS) to Neutral from Buy with a price target of $115, down from $116. Following a “remarkable two years,” the re-rating seems likely over, says the analyst, who expects Axis’ EPS growth to be lower than most peers due to lower levels of capital return as the company continues to deploy capital into underwriting opportunities. While the idea of Axis being acquired has long attracted some shareholders, only to be disappointed, the firm recognizes that this risk is “likely a more potent one in a softening market with larger competitors seeking to deploy capital,” the analyst added.