Hanover Insurance (THG – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Michael Zaremski from BMO Capital maintained a Buy rating on the stock and has a $189.00 price target.
Michael Zaremski has given his Buy rating due to a combination of factors that suggest Hanover Insurance is poised for significant growth. One of the key reasons is the anticipated improvement in Hanover’s home-insurance profit margins, which are expected to surpass consensus estimates by a notable margin. This improvement is driven by higher policy deductibles that are likely to enhance the loss-ratio profit margin by reducing the severity and frequency of claims.
Additionally, Zaremski’s EPS estimates for Hanover are above consensus for the years 2025 and 2026, indicating a strong earnings outlook. The target price set by BMO implies a 23% upside, supported by a price-to-earnings multiple that is slightly below historical levels. Furthermore, Hanover’s casualty reserves are considered healthier compared to its peers, and there is an expected boost from net investment income, which contributes to the positive outlook for the company’s financial performance.