In a report released yesterday, Joshua Shanker from Bank of America Securities reiterated a Buy rating on Renaissancere Holdings (RNR – Research Report), with a price target of $437.00.
Joshua Shanker has given his Buy rating due to a combination of factors including the company’s strong capital position and its ability to manage the impacts of the California wildfires. Despite the challenges posed by these wildfires, RenaissanceRe Holdings remains confident in its capital deployment strategy, having already repurchased a significant amount of shares. Shanker has adjusted his expectations for share repurchases in the short term but anticipates an increase in repurchases in the coming years, reflecting confidence in the company’s earnings potential.
Additionally, Shanker has factored in the estimated financial impact of the wildfires on the company, which has led to adjustments in the catastrophe estimates and management fees. Despite these adjustments, the company’s valuation has been positively influenced by a higher peer group multiple, resulting in an increased price objective. With a significant upside to the revised price objective and anticipated robust capital returns, Shanker reiterates his Buy recommendation for RenaissanceRe Holdings.
Shanker covers the Financial sector, focusing on stocks such as Cincinnati Financial, Progressive, and Renaissancere Holdings. According to TipRanks, Shanker has an average return of 8.3% and a 58.70% success rate on recommended stocks.
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