Bank of America Merrill Lynch Has Buy On Assurant

Bank of America Merrill Lynch is reiterating its Buy rating and a $50 price target on shares of Assurant Inc. AIZ after it announced a deal to acquire SuerDeposit for under $50 million. In a note to clients, Bank of America Merrill Lynch writes, "We are reiterating our Buy rating and $50 Price Objective on AIZ. Our PO is the highest on the Street (10% higher than the next closest target) however at 1.0X year ahead book value we feel that our valuation is conservative. We expect substantial share repurchase will cause AIZ's operating ROE to increase from a projected 10.5% in 2011 to over 11.5% in 2012 and 2013." At last check, shares were off 3 cents to $35.45.