RNR - Everest Re upgraded to Buy after Deutsche Bank reassesses model

Deutsche Bank analyst Phil Stefano upgrades Everest Re Group (RE) to Buy from Hold, saying his prior model forecasts for the company were "far too conservative."Also sees new management potentially resetting sentiment for the reinsurer and says recent earnings headwinds are already priced into investor models.In addition, "book value growth does not support the discounted valuation vs. Renaissance Re (RNR)."See how RE's price/book multiple compares with peers RNR, ACGL, and AXS in the past year in chart below.SA contributor Stephen Simpson thinks RE's shares should do well if the company can ease investor doubts about reserves.

For further details see:

Everest Re upgraded to Buy after Deutsche Bank reassesses model