Arch Capital price target lowered to $118 from $126 at Wells Fargo

Wells Fargo lowered the firm’s price target on Arch Capital (ACGL) to $118 from $126 and keeps an Overweight rating on the shares. The firm views recent sell down as an attractive entry as the shares pulled back post EPS. While there will be volatility in insurance margins post Allianz deal and mix shift to casualty Arch, shares should outperform given lack of reserve risks and strong returns, Wells adds.