Axis Capital initiated with an Outperform at RBC Capital

RBC Capital initiated coverage of Axis Capital (AXS) with an Outperform rating and $125 price target The company has undergone a transition under new leadership, shifting from a balanced insurer/reinsurer with volatile results towards a more stable primary specialty P&C underwriting portfolio that has been de-risked from volatility by business line exits and reserving actions, the analyst tells investors in a research note. The stock’s valuation has come up, but it is warranted, and the firm expects strong book value per share growth to support share appreciation, even in a flat multiple environment, RBC added.