Share on StockTwits

AXIS Capital Holdings (NYSE:AXS) was downgraded by investment analysts at Bank of America Corp. from a “buy” rating to a “neutral” rating in a note issued to investors on Tuesday, AnalystRatingsNetwork reports. They currently have a $48.00 price objective on the stock. Bank of America Corp.’s price target would indicate a potential upside of 2.04% from the company’s current price.

The analysts wrote, “We are lowering our rating on Axis to Neutral from Buy due to valuation and a more challenging environment in its reinsurance operation. Axis shares are up almost 36% year to date and are within 2% of our price objective. The stock is now trading at 12% above the estimated 2Q book value, a valuation that seems fair given an expected ROE of 9.5%-10% for next year (after taking into account estimated unrealized losses in the 2Q). Although we expect a growing earnings contribution from the company’s A&H unit, pricing pressure in catastrophe reinsurance should present a headwind for the earnings. Reinsurance accounts for just over 50% of Axis’s net written premiums and catastrophe reinsurance makes up 20% of the reinsurance book. Although this contribution is quite manageable, the expected margins in the cat book are above the rest of the reinsurance business suggesting that pricing pressure in this could have an outsized impact on operating earnings.”

A number of other firms have also recently commented on AXS. Analysts at Nomura initiated coverage on shares of AXIS Capital Holdings in a research note to investors on Wednesday, June 5th. They set a “neutral” rating on the stock. Separately, analysts at MKM Partners upgraded shares of AXIS Capital Holdings from a “neutral” rating to a “buy” rating in a research note to investors on Tuesday, May 28th. They now have a $52.00 price target on the stock, up previously from $45.00. Finally, analysts at UBS AG raised their price target on shares of AXIS Capital Holdings from $46.00 to $48.00 in a research note to investors on Tuesday, April 30th. They now have a “buy” rating on the stock.

Five research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. AXIS Capital Holdings presently has a consensus rating of “Buy” and a consensus target price of $47.63.

AXIS Capital Holdings (NYSE: AXS) traded down 2.34% on Tuesday, hitting $45.94. AXIS Capital Holdings has a 52-week low of $32.03 and a 52-week high of $48.39. The stock’s 50-day moving average is currently $45.8. The company has a market cap of $5.477 billion and a price-to-earnings ratio of 8.47.

AXIS Capital Holdings (NYSE:AXS) last issued its quarterly earnings data on Thursday, April 25th. The company reported $1.92 EPS for the quarter, beating the Thomson Reuters consensus estimate of $1.17 by $0.75. The company had revenue of $1.03 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter in the prior year, the company posted $1.07 earnings per share. The company’s quarterly revenue was up 5.2% on a year-over-year basis. On average, analysts predict that AXIS Capital Holdings will post $4.86 earnings per share for the current fiscal year.

AXIS Capital Holdings Limited is a holding company for the AXIS group of companies. The Company provides a range of specialty (NYSE: AXS)insurance on a worldwide basis, through operating subsidiaries and branch networks based in Bermuda, the United States, Canada, Europe, Australia and Singapore.

Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.