Wunderlich Securities Establishes Harleysville Group Buy Rating And $37 Price Target

Harleysville Group HGIC is expected to release 3Q10 results today, November 1, after the close, Wunderlich Securities reports. “We expect HGIC will report operating EPS declined 4% to $0.79 compared to $0.83 a year ago; consensus forecast is $0.78,” Wunderlich Securities writes. “We anticipate 3Q10 results included share repurchase, positive pricing trends in personal lines property/casualty insurance, and expected favorable reserve development.” Wunderlich Securities said that it expects Harleysville Group to announce a dividend increase in line with its year-ago increase of 9%, adding, “We project book value per share rose 6% to $29.25 in 3Q10. We rate HGIC shares Buy with a $37 target.” Harleysville Group currently trades at $34.43.