Healthcare Reform Positive for PRA

Analysts at SunTrust Robinson Humphrey maintain their "buy" rating on ProAssurance Corp (NYSE: PRA)(FREE stock trend analysis). The target price for PRA is set to $64.

According to SunTrust Robinson Humphrey, PRA is expected to benefit from healthcare reforms in the long term. A recent up-tick in acquisition opportunities will help ProAssurance in the near term, the analysts say. PRA has suggested that it is witnessing stability in prices due to an improving market environment.

ProAssurance’s med mal rates improved during the first nine months of this year and the trend is continuing. The company’s management has indicated that there will be more acquisition opportunities during 2010. The company has a robust balance sheet with a 3% debt to total capital, SunTrust Robinson Humphrey adds.