FNF - Credit Suisse initiates Fidelity National First American Financial at Outperform

Credit Suisse analyst Andrew Kligerman initiates coverage of Fidelity National Financial (FNF) and First American Financial (FAF), both with an Outperform rating.With FNF being the market share leader in the title insurance market, Kligerman expects FNF to gain more scale efficiency from industry consolidation."Moreover, FNF's balance sheet is a differentiator for winning commercial transactions," the analyst wrote in a note to clients.In addition, recent annuity M&A deals imply FNF can unlock value in its F&G franchise, he added.Also notes that FNF has lower interest rate sensitivity vs. its pure-play title insurance peers.For First American, Kligerman points to the company's strong operating cash flow generation, usually 100% or more of adjusted earnings, and the potential for the company to monetize data and investments in digital technology."FAF's industry-leading data platform allows it to sell data and lower its cost of service," Kligerman wrote.Notes that real estate market trends support long-term growth, but

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Credit Suisse initiates Fidelity National, First American Financial at Outperform