Wunderlich Securities Reiterates Hold And PT Of $67 On ProAssurance Corporation (PRA)

Wunderlich Securities reiterated its Hold rating and $67 price target on ProAssurance Corporation PRA. In a research report published today, Wunderlich justified its decision by contradicting Q1 earnings results. On the one hand, operating EPS was above expectations, but if reserves are excluded, EPS falls below Wunderlich's expectations. In the report, Wunderlich states, "ProAssurance Corp. (PRA) reported 1Q11 operating EPS above expectations of $1.46 compared to our estimate of $1.26 and consensus of $1.16. Book value increased 14% to $61.61 compared to a year ago. The beat was primarily the result of better-than-expected favorable reserve development. Favorable development was $40 million compared to our estimate of $30 million. Excluding reserve development, operating EPS for 1Q11 were below our estimate at $0.54 compared to $0.67 a year ago. Pricing conditions in the company's markets are competitive. We maintain our Hold rating and $67 price target on PRA shares." On Thursday, ProAssurance closed at $66.46.