Bank of America Securities analyst Joshua Shanker reiterated a Sell rating on Travelers Companies yesterday and set a price target of $265.00.
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Joshua Shanker has given his Sell rating due to a combination of factors influencing Travelers Companies. Despite the company’s strong underwriting results in the homeowners’ segment and a better-than-expected earnings performance in the third quarter, there are underlying concerns. The business insurance segment is experiencing a slowdown in premium growth, with renewal rate changes continuing to decelerate, which could pressure top-line growth.
Moreover, while the homeowners’ business shows improved underwriting results, the aggressive rate increases have led to a decline in the number of policies. Additionally, the market dynamics are softening, and increased competition in both commercial and personal lines suggests that there may be more attractive investment opportunities elsewhere. Consequently, despite a slight increase in the price objective, Shanker maintains a cautious outlook, reiterating an Underperform rating.
In another report released on October 9, J.P. Morgan also maintained a Sell rating on the stock with a $297.00 price target.
TRV’s price has also changed slightly for the past six months – from $252.480 to $261.570, which is a 3.60% increase.