KBW Reiterates PT of $40 and Outperform on Argo Group International Holdings, Lowers 2011 EPS Estimates

KBW reiterated its Outperform rating on Argo Group International Holdings AGII. At the same time, KBW left its price target on the company's stock unchanged at $40, in spite of lowering its 2011 earnings per share estimate. In a research report published today, KBW states, "Based on AGII's 1Q11 10-Q filing, we are revising AGII's 1Q11 operating EPS to reflect the resolution of a disputed reinsurance recoverable balance related to certain asbestos claims in the run-off segment. Our 2011 EPS estimate is going to a loss of $1.05 (from a loss of $0.90). We are maintaining our 2012 EPS estimate of a $2.80 profit. We are maintaining our $40 target price and Outperform rating." On Wednesday, Argo added 0.45% to its value to close the day at $28.92.