Chubb's Growth Slows Vs. Peers, Analyst Downgrades Despite Stock Surge
Portfolio Pulse from Lekha Gupta
BofA Securities analyst Joshua Shanker downgraded Chubb Limited (NYSE:CB) to Underperform from Neutral, citing slower growth compared to peers despite a strong stock performance. The analyst raised the price target to $275, noting that Chubb's growth in book value and EPS lags behind peers. Investors can gain exposure to Chubb through iShares U.S. Insurance ETF (NYSE:IAK) and Invesco KBW Property & Casualty Insurance ETF (NASDAQ:KBWP).
October 04, 2024 | 5:17 pm
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NEUTRAL IMPACT
iShares U.S. Insurance ETF, which includes Chubb, may see a slight impact due to Chubb's downgrade, but the diversified nature of the ETF could mitigate significant effects.
IAK includes Chubb, so the downgrade may have a minor impact. However, the ETF's diversified holdings could buffer against significant price changes.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Invesco KBW Property & Casualty Insurance ETF, which includes Chubb, might experience a slight impact from Chubb's downgrade, but its diversified holdings could mitigate major effects.
KBWP includes Chubb, so the downgrade may have a minor impact. However, the ETF's diversified holdings could buffer against significant price changes.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Chubb Limited was downgraded to Underperform by BofA Securities due to slower growth compared to peers, despite a strong stock performance. The price target was raised to $275.
The downgrade to Underperform suggests a negative outlook on Chubb's stock, despite a raised price target. The analyst highlights slower growth compared to peers, which could lead to a short-term negative impact on the stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100