Harel initiated with a Hold at Jefferies

Jefferies analyst Philip Kett initiated coverage of Harel with a Hold rating and ILS 28 price target. Harel is a market leader in Israel’s insurance industry, with top quartile profitability, which “bodes well” for the successful execution of management’s diversification strategy in the medium-term. However, Harel’s market leadership has left it relatively exposed to the issue of Long-Term Care, or LTC, Insurance and left it carrying NIS greater than 10B of liabilities with terms and conditions that are “highly customer friendly,” the analyst tells investors.