RenaissanceRe reinstated with Neutral from Underweight at JPMorgan

JPMorgan upgraded RenaissanceRe to Neutral from Underweight with a price target of $204, up from $181, after reinstating coverage of the name. The stock’s valuation seems compelling, but is less attractive than it appears at first glance as the company is generating peak margins in a cyclical business, the analyst tells investors in a research note. The firm says ongoing hard pricing would drive robust margins and enable the stock to outperform, while any signs of new capacity entering the market or terms/conditions softening would pressure the stock.