Cincinnati Financial initiated with a Perform at Oppenheimer

Oppenheimer analyst Michael Phillips initiated coverage of Cincinnati Financial with a Perform rating and no price target. Cincinnati Financial’s equity market exposure and improved underwriting results are compelling, but the current turbulence related to rising loss cost inflation and greater frequency and severity of catastrophic activity will take time to filter down to the bottom line, the analyst tells investors in a research note. It could take Cincinnati several more quarters to regain the earnings momentum and resulting ROE to justify a higher multiple, the firm adds.