KBW Reduces PT on EMC Insurance Group, Maintains Market Perform (EMCI)

KBW reduced its price target on EMC Insurance Group EMCI to $23. At the same time, KBW left its rating unchanged at Market Perform, in spite of lowering its earnings per share estimates for 2011 and 2012. In a research report published today, KBW states, "EMCI's 1Q operating loss was within management's preannounced range as catastrophe losses ($0.47/share during 1Q11) continue to weigh on the company's results. EMCI lowered its 2011 operating EPS guidance due to additional 2Q severe storm losses. We're lowering our 2011 and 2012 EPS estimates. We're lowering the target price to $23 and we reiterate our Market Perform rating." On Tuesday, EMC Insurance closed the day at $21.05.