Everest Re Draws Buy Rating Amidst New Change In Management (RE)

Deutsche Bank is out with a report, where it initiates a “buy” rating on shares of Everest Re RE; it has also set a price target of $92.00 on the stock. Analysts noted that RE’s stock bottomed out in early June, amidst market speculation of unfavorable development from the Chile quake that proved to be true. After three years of underperformance, analysts think that with Ralph Jones succeeding CEO Joe Taranto at year-end, this may present an opportunity to shift direction operationally and stock-wise. Deutsche Bank also added, “Whereas the company grew dramatically in niche areas like the California’s workers’ compensation market at the outset of the last decade’s hard market, the company has scaled back from concentrated risks as pricing declined. Capital at the firm is underdeployed given current market conditions, though international expansion continues. Given his background, incoming CEO Jones may try to grow in primary insurance markets, but the pricing environment remains a challenge.” Shares of RE jumped 15 cents on the day, up to $80.30.