Travelers price target lowered to $220 from $223 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Travelers to $220 from $223 and keeps an Equal Weight rating on the shares. On average for the P&C Insurance group, the firm’s Q2 and 2024 EPS estimates decreased 10.6% and 2.2%, respectively, from prior estimates due to higher catastrophe estimates. The firm notes it is also moving down its estimates for reinsurers to better reflect potential losses due to larger catastrophe events. For brokers, the firm moved down its estimates due to higher expenses and the focus on achieving margin expansion.