RNR - UBS upgrades Reinsurance Group of America on potential for earnings upside

UBS analyst Brian Meredith upgrades Reinsurance Group of America ([[RGA]] -2.4%) to Buy from Neutral on the basis that the market isn't pricing in an improved COVID-19 mortality trend and its potentially better-than-expected earnings.Raises price target to $137 from $93.Points out that stock traded at 13% below historical average P/E and 34% below P/BVPS after losing more than 30% YTD, partly due to elevated mortality and its Q2 capital raise.Flags potential earnings benefit in the event of a successful vaccine and sees continuing quarantine restrictions reducing traditional seasonal mortality this winter during the flu season."Given better visibility on mortality and several sources of probable underwriting upside over the near-term, we see the discount as unwarranted," Meredith wrote.The Buy rating is more optimistic than both the Quant rating (Neutral) and the average Wall Street analyst's rating (also Neutral; 1 Very Bullish, 3 Bullish, 4 Neutral, 1 Very Bearish).RGA's P/E GAAP (trailing

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UBS upgrades Reinsurance Group of America on potential for earnings upside