Piper Jaffray Neutral On Tower Group (TWGP)

Piper Jaffray has a Neutral rating and a $26 price target on shares of Tower Group TWGP. In a note to investors, Piper Jaffray writes, "Tower reported operating EPS of $0.49 in 1Q11, ahead of consensus and PJC's estimate of $0.46. Higher net premiums earned and a slightly better loss ratio drove the upside. TWGP reported net investment income above estimates, with ceding commissions lower than forecasted. The company's top line benefited from 2010 acquisition activity while the expense ratio remained in line with estimate. In the release, TWGP reiterated outlook for 2011 and increased their quarterly dividend from 12.5 cents per share to 18.75 cents per share. We maintain our Neutral rating." Shares of TWGP gained 16 cents yesterday to close at $22.30, a gain of 0.7%.