Goldman Sachs Adds Ace (ACE) To Conviction Buy List

Goldman Sachs Group analysts Richard Ramsden, Brian Foran, Daniel Harris and Jessica Binder Graham added Ace Limited ACE to its Conviction Buy List, with a price target of $61 per share. The analysts said that Ace Limited continues to trade at attractive levels, even though it is expected to produce ROEs of 10% to 11% over the next few years. They also said that there was a chance that Ace Limited would be added back to the S&P 500 index, which would probably increase investor interest in the company. The Goldman Sachs Group analysts wrote, "in a volatile environment, sentiment is likely to improve for firms that offer stability, such as ACE. We believe ACE remains the stock to own for investors that want to maintain/gain exposure to the non-life insurance space in advance of any potential turn in the market over the next few years. Our $61, 12-month book value-based price target implies 20% upside."