- Argus upgrades the property and casualty insurer Chubb (NYSE:CB) to Buy from Hold based on record operating earnings and underwriting expansion in the second quarter.
- In Q2, P&C premiums rose 15% while the combined ratio also improved to 85.5.
- "Chubb benefits from a strong brand, an experienced management team, and a healthy balance sheet," according to the Argus note.
- Shares of CB have rejected $175 three separate times since March of this year, and underperforms the S&P 500 by ~8% on a Y/Y basis.
- Argus's target price of $185 implies 10.5% upside from Thursday's closing price.
- The Buy rating agrees with the Bullish Quant rating (top rating in Growth and poorest rating in Value) and the Bullish Wall Street analyst rating (Very Bullish 5, Bullish, 6, Neutral 7, Bearish 1).
- In the last three months, there have been 12 upward revisions for Q3 EPS estimates vs. just 4 downward revisions, according to the chart below.
- Earlier this week, Chubb Q2 earnings beat on record core operating revenue, underwriting expansion.
