Bank of America analyst Joshua Shanker has increased the price target for Travelers (TRV, Financial) from $249 to $258, despite maintaining an Underperform rating on the stock. This adjustment follows Travelers' first-quarter performance, which exceeded expectations and consensus estimates of 74 cents per share, as well as the firm's forecast of 3 cents per share.
The firm attributed part of the positive outcome to a $64 million reduction in projected catastrophe losses for the quarter. This adjustment contributed a 22 cents per share boost to the earnings per share (EPS). Moreover, Travelers benefitted from a favorable development in prior-year loss reserves, amounting to $378 million.
Additionally, Travelers saw better-than-expected underlying underwriting margins, which improved earnings by 85 cents per share. This was primarily driven by strong performance in Personal Lines, with a modest contribution from Business Insurance.
However, these positive factors were somewhat counterbalanced by lower-than-anticipated returns from alternative investments and a slower pace of premium revenue growth, as noted by Bank of America.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for The Travelers Companies Inc (TRV, Financial) is $275.07 with a high estimate of $310.00 and a low estimate of $215.21. The average target implies an upside of 7.96% from the current price of $254.78. More detailed estimate data can be found on the The Travelers Companies Inc (TRV) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, The Travelers Companies Inc's (TRV, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for The Travelers Companies Inc (TRV, Financial) in one year is $242.89, suggesting a downside of 4.67% from the current price of $254.78. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the The Travelers Companies Inc (TRV) Summary page.
