RE - Raymond James initiates Everest Re at Outperform as reinsurance market conditions improve
- Raymond James initiated coverage on Everest Re ( NYSE: RE ) with an Outperform rating as the company is positioned to benefit from improving reinsurance market conditions.
- "We believe the potential of flat-to-declining exposure growth with increasing premiums in its reinsurance segment combined with lower volatility in its growing specialty insurance segment could position RE to report operating ROBEs of 20%+ in 2023 and 2024," said analyst Gregory Peters.
- He expects Everest Re ( RE ) to report strong topline growth while maintaining/reducing property exposure in its reinsurance segment, which should lead to a consolidated catastrophe ratio closer to its target of ~6 points.
- Raymond James initiated 2022, 2023 and 2024 adj. EPS estimates at $24.10, $43.25 and $51 (vs. consensus $24.70, $43.82 and $51.77, respectively).
- It set a price target of $385 on Everest Re ( RE ), implying 8% potential upside to its last close.
- Raymond James' view on Everest Re ( RE ) is in line with bullish ratings from SA Quant and Wall Street analysts .
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Raymond James initiates Everest Re at Outperform as reinsurance market conditions improve