Analyst Michael Zaremski of BMO Capital maintained a Buy rating on Renaissancere Holdings (RNR – Research Report), with a price target of $292.00.
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Michael Zaremski has given his Buy rating due to a combination of factors that highlight Renaissancere Holdings’ strong potential for growth and value. Firstly, the company is expected to benefit from higher property reserve releases, particularly following favorable trends in 2024. This trend indicates a robust capacity for capitalizing on reserve releases, which are projected to remain above industry consensus in the coming years. Additionally, Renaissancere’s proactive approach to share repurchases in 2024 has been higher than expected, further enhancing shareholder value despite some offsetting factors like an increased combined ratio in Casualty & Specialty.
Moreover, the company’s current valuation appears attractive both relatively and absolutely, as RNR is trading slightly below its long-term average price-to-book ratio. This suggests there is room for appreciation. The optimism around property growth, driven by increased demand for reinsurance protection following significant catastrophe losses, also adds to the company’s favorable outlook. Lastly, RNR’s conservative approach to casualty reserves positions it well among peers, with potential earnings per share upside from continued higher property reserve releases, reinforcing the Buy rating.
In another report released today, KBW also maintained a Buy rating on the stock with a $294.00 price target.