Raymond James has embarked on new coverage of Fairfax Financial Holdings Ltd. (FRFHF, Financial), awarding it an Outperform rating. The firm has set a price target of C$2,600 for the company's stock. Fairfax Financial has grown into one of the top 20 global property and casualty insurers, leveraging both organic growth and strategic mergers and acquisitions. Its primary business focus remains on commercial insurance lines.
The research note from Raymond James highlights that Fairfax's strategic growth initiatives have positioned the company to potentially maintain a mid-to-high teens return on equity. Notably, this growth may come with reduced volatility compared to its past performance. Additionally, Fairfax is expected to continue achieving its long-term goal of over 15% annual growth in book value.
