Axis Capital upgraded to Buy from Underperform at BofA

BofA upgraded Axis Capital to Buy from Underperform with a price target of $68, up from $53. Shares have notably underperformed reinsurance peers over the past year, notes the analyst, who adds that the firm’s “pessimistic outlook has changed.” Axis “isn’t really a ‘reinsurance’ company” as it derives 70% of its premium from primary insurance markets, says the analyst, who notes that primary insurers typically trade at premiums to reinsurance counterparts. Axis has “ideally positioned” its investment portfolio for 2023/2024, the analyst added.