ACE Rating Lowered to Hold at Miller Tabak (ACE)
ACE (NYSE:ACE) was downgraded by equities researchers at Miller Tabak from a “buy” rating to a “hold” rating in a research report issued on Thursday, TheFlyOnTheWall.com reports. They currently have a $96.35 target price on the stock, up from their previous target price of $91.50. Miller Tabak’s target price indicates a potential upside of 2.36% from the stock’s previous close.
The analysts wrote, “Given a recent influx of capital into the worldwide property/casualty industry, we believe a sustained strong up-cycle in rates is not in the cards for 2014. Meanwhile, the industry — and ACE — has so far enjoyed very modest catastrophe claims costs in 2013, a condition which both enhances current earnings and promises the potential for more new capital to enter the market and, in some lines, stimulate the migration of rate competition from ‘CAT’ coverages to other underwriting areas. These market conditions strongly suggest to us that ACE, having achieved a premium equity valuation vs. its peers, will trend toward matching the group’s overall returns unless or until events causing more severe underwriting losses draw fresh attention to ACE’s superior underwriting disciplines.”
Shares of ACE (NYSE:ACE) traded down 1.75% during mid-day trading on Thursday, hitting $92.48. The stock had a trading volume of 417,376 shares. ACE has a one year low of $75.95 and a one year high of $95.90. The stock has a 50-day moving average of $91.19 and a 200-day moving average of $90.39. The company has a market cap of $31.454 billion and a P/E ratio of 9.96.
ACE (NYSE:ACE) last released its earnings data on Tuesday, July 23rd. The company reported $2.29 EPS for the quarter, beating the Thomson Reuters consensus estimate of $1.95 by $0.34. The company had revenue of $4.39 billion for the quarter, compared to the consensus estimate of $3.81 billion. During the same quarter in the previous year, the company posted $2.17 earnings per share. The company’s revenue for the quarter was up 6.3% on a year-over-year basis. On average, analysts predict that ACE will post $8.49 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on ACE. Analysts at Guggenheim initiated coverage on shares of ACE (NYSE:ACE) in a research note to investors on Wednesday, September 18th. They set a “buy” rating and a $129.00 price target on the stock. Separately, analysts at Zacks reiterated a “neutral” rating on shares of ACE (NYSE:ACE) in a research note to investors on Thursday, September 5th. They now have a $93.00 price target on the stock. Finally, analysts at Keefe, Bruyette & Woods raised their price target on shares of ACE (NYSE:ACE) from $100.00 to $108.00 in a research note to investors on Thursday, July 25th. Three investment analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. The company has an average rating of “Buy” and a consensus target price of $103.42.
ACE Ltd (NYSE:ACE) is a holding company of the ACE Group of Companies.
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