Chubb downgraded to Underperform at BofA following 29% year-to-date rally

As previously reported, BofA downgraded Chubb (CB) to Underperform from Neutral with a price target of $275, up from $264. Shares have outperformed the S&P 500, rising 29% year-to-date and 41% over the past year, likely having benefitted from the “perception boost” associated with the May 15 announcement that Berkshire Hathaway (BRK.A) had acquired a sizable stake, to which it has since added, the analyst tells investors. However, the firm believes the outperformance of Chubb, and other commercial P&C stocks, is “largely non-fundamental,” and cites Chubb’s slower-than-peer growth.