Hallmark Financial Services (HALL) received a Buy rating and a $14 price target from Boenning & Scattergood analyst Robert Farnam today. The company’s shares closed yesterday at $10.98.
Farnam wrote:
“We are upgrading Hallmark’s rating to Outperform from Neutral. Based on our ROE expectations relative to peers, we believe Hallmark’s shares are undervalued, trading at 0.7x book versus a peer group of nine specialty insurers with a median valuation of 1.6x book. After booking reserve charges in each of the last three calendar years, Hallmark’s reserve development was flat in 4Q18 and 1Q19. Following our review of Hallmark’s Schedule P reserves and discussions with the company’s Chief Actuary, we believe reserve adequacy has improved. We continue to model modest adverse reserve development through the forecast period to be conservative, but enhancements to Hallmark’s underwriting and claims processes in recent years have begun to bear fruit.”
According to TipRanks.com, Farnam has currently no stars on a ranking scale of 0-5 stars, with an average return of -9.5% and a 32.7% success rate. Farnam covers the Financial sector, focusing on stocks such as Argo Group International Holdings Ltd, 1347 Property Insurance Holdings Inc, and Selective Insurance Group.
Currently, the analyst consensus on Hallmark Financial Services is a Moderate Buy with an average price target of $14.
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The company has a one-year high of $11.58 and a one-year low of $9.48. Currently, Hallmark Financial Services has an average volume of 25.37K.
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Hallmark Financial Services, Inc. is a holding company, which engages in the provision of insurance products. It operates through the following segments: Standard Commercial, Specialty Commercial and Personal. The Standard Commercial segment offers property, casualty, and accident insurance services.
