Axis Capital initiated with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of Axis Capital (AXS) with a Neutral rating and $104 price target The firm has a “negative bias” on Bermuda reinsurer stocks. The extent of over-earning in the sector is underappreciated in consensus estimates and shares valuations are unlikely to be supportive of stock performance, the analyst tells investors in a research note. Goldman sees a building capital supply/demand imbalance and increases the chance of a softening cycle.