Wunderlich Securities Reiterates Buy Rating on Aspen Insurance (AHL)

Wunderlich Securities is out with a research report this morning, where it reiterates its Buy rating on Aspen Insurance Holdings Limited AHL; it has a $37.00 price target on the stock. The WS analysts cited the company's recent announcement that it is accelerating its $184 million stock buyback. In addition, the company disclosed $16mm worth of shares have been repurchased since September 30, 2010. The analysts noted that AHL shares are trading at 69% of estimated 2011 book value of $42.12. The company has stated that repurchasing shares at this discounted level provides the best returns on excess capital. As for valuation, the analysts remarked, “Valuation. AHL is currently valued at 0.69 times 2011 estimated book value of $42.12, a discount to peers. The peer group is trading at 0.8 times 2011E book value. Our $37 price target reflects 0.9x 2011E book value. We believe the shares are undervalued and the sell-off in stock following 3Q10 results and the $200 million buyback program represents a buying opportunity.”