Citi downgraded Everest Group to Neutral from Buy with a price target of $375, down from $452. To meet its margin targets, the company needs to accelerate attritional margin improvement or reserve releases, or meaningfully beat on catastrophes, the analyst tells investors in a research note. The firm believes skepticism on Everest Group’s reserve strength may lessen the perceived quality of attritional beats or reserve releases. The company’s aggressive investment portfolio repositioning in Q4 should boost returns, but it also increases the perception of risk that there are potentially fewer higher quality underwriting margin levers to pull to meet guidance, says Citi.
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Read More on EG:
- Wells downgrades Everest Group on reserve adequacy concerns
- Everest Group downgraded to Equal Weight from Overweight at Wells Fargo
- Everest Group reports Q4 EPS $18.53, consensus $14.66
- Everest Group price target raised to $522 from $504 at BofA
- Everest Group initiated with a Market Perform at TD Cowen
