Citi Reiterating Buy On XL Group (XL)

Citi Investment Research is reiterating its Buy rating and $25 price target on XL Group plc XL after it reported earnings. In a research report sent to clients, Citi writes, "Key drivers were CAT losses higher than consensus expectations partially offset by higher than forecasted releases. XL stated that the company has exhausted its current share repurchase authorization and announced an additional $1B plan. Increasing our FY '10 est. on the beat, maintaining our '11 est. as the positive effect of the share repurchases should largely be offset by continued low investment yields and decreasing reserve releases, trimming ‘12E by $0.10 to $2.30 due to the persistent low interest rate environment. Maintain Buy rating and $25 TP." Shares of XL gained 23 cents yesterday to close at $21.03, a gain of 1.1%.