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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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
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