Travelers price target raised to $234 from $188 at Argus

Argus analyst Kevin Heal raised the firm’s price target on Travelers to $234 from $188 and keeps a Buy rating on the shares. The company’s Q4 earnings were significantly higher than expected due to materially lower catastrophe losses than the previous year, a higher underwriting gain and growth in net investment income, the analyst tells investors in a research note. Argus adds that margins at Travelers should improve as the company raises prices on auto and homeowners’ insurance while maintaining current retention rates and as it expands its data analytics and digital initiatives.