Bank Of America Reports Comfortably Redundant Reserves On The Travelers Cos

According to Bank of America, the Travelers Cos TRV reserves appear comfortably redundant. Bank of America said that its $68 price objective is slightly above our estimated year-ahead book value. “Given Travelers' franchise, active capital management strategy and an ROE that appears to be staying at or above the company's cost of capital, we do not expect the stock to stay materially below book value for an extended period of time and we believe the shares merit a slight premium to book value, especially at a time when fundamentals appear to be stabilizing.” The Travelers Cos closed on Friday at $56.64.