UBS reported on Tuesday that they have increased their price target on insurance provider The Travelers Companies, Inc. (TRV).
The firm, which currently has a “Buy” rating on TRV, has increased its price target from $80 to $85. This price target suggests a 8% increase from the stock’s current price of $77.94.
An analyst from the firm commented, “We expect the premium rate increases that TRV is achieving on its commercial insurance business to be sustainable at least through the first half of 2013, as the insurer attempts to offset the drag from low new-money yields on its ROE. This, coupled with rate increases on personal auto insurance, should lead to continued improvement in underlying underwriting margins in 2013 and improvement in TRV’s ROE, despite the headwind of lower new-money yields.”
Looking ahead, the firm has increased their estimates for 2013 from $6.75 per share to $7.30 per share. For 2014, UBS has increased their price target from $6.70 per share to $7.35 per share.
The Bottom Line
Shares of The Travelers Companies, Inc. (TRV) have a 2.36% yield, based on Tuesday afternoon’s price of $77.91.
The Travelers Companies, Inc. (TRV) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.