Deutsche Bank Upgrades XL Group Shares To Hold, $35 PT
In a research report issued today, Deutsche Bank analyst Joshua Shanker reiterated a Hold rating on XL Group (NYSE:XL) with a price target of $35.00.
Shanker noted, “While we regarded the sale of the life reinsurance business as ultimately deleterious to ROE, that catalyst is now part of the past. XL appears to earning about an 7-8% ROE, which we believe is likely near or just under its cost of equity capital. P&C stocks have rallied in the past month behooving us to increase our valuation basis to 1.0x book. This valuation target multiple expansion switches our target price to the modestly positive from the modestly negative, and we upgrade our rating on XL shares to Hold. “
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joshua Shanker has a total average return of 8.8% and a 59.6% success rate. Shanker has an 95.6% average return when recommending XL, and is ranked #560 out of 3349 analysts.