Travelers price target raised to $258 from $249 at BofA

BofA analyst Joshua Shanker raised the firm’s price target on Travelers (TRV) to $258 from $249 and keeps an Underperform rating on the shares. Travelers’s Q1 result came in ahead of consensus of 74c and the firm’s forecast of 3c. All-in, BofA says it overestimated Q1 cat loss experience by $64M, a 22c/share EPS tailwind. Additionally, the company benefited from $378M of net favorable prior-year loss reserve development. Finally, underlying underwriting margins were better than expected primarily in Personal Lines, but also modestly better in Business Insurance, an 85c/share EPS boost, the firm adds. These tailwinds were modestly offset by lower-than-expected alternative investment income and slower premium revenue growth, says BofA.