The Hanover Insurance Group Is Poised For A Turnaround Despite Inflation In Personal Auto & Home: Analyst Makes Bullish Case
Portfolio Pulse from Lekha Gupta
BMO Capital Markets analyst Michael Zaremski has upgraded The Hanover Insurance Group Inc (NYSE:THG) to Outperform from Market Perform rating with a price target of $126.00. The analyst expects the company's ROE to revert closer to 13% following a series of disappointing quarters. Zaremski also expects THG to witness a decline in policy growth in the coming 18 months. The analyst raised the EPS estimate to $11.53 for FY24 and $13.25 for FY25.
August 31, 2023 | 7:00 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
The Hanover Insurance Group Inc has been upgraded to Outperform from Market Perform by BMO Capital Markets analyst Michael Zaremski. The analyst expects the company's ROE to revert closer to 13% and anticipates a decline in policy growth in the coming 18 months.
The upgrade from BMO Capital Markets is a positive signal for The Hanover Insurance Group. The analyst's expectation of the company's ROE reverting closer to 13% indicates a potential improvement in the company's profitability. However, the anticipated decline in policy growth could be a concern for investors. The raised EPS estimates for FY24 and FY25 also suggest a positive outlook for the company's earnings.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100