Zacks: Montpelier “Remains Well Positioned”

April 27, 2013

Bermuda-based Montpelier Re Holdings stock had its “outperform” rating reaffirmed by Zacks in a research note issued on Friday [Apr. 26]. They currently have a $31.00 price target on the stock.

Zacks‘ analyst wrote, “Montpelier’s first quarter earnings per share surpassed the Zacks Consensus estimate, but fell short of year ago earnings. Premiums, however, improved compared with the year-ago numbers.

“It remains well positioned to deliver solid numbers going forward, given its increased exposure in the property catastrophe lines of business.

“In addition, focusing on underwriting operations, augmenting capital flexibility, and strengthening its competitive position augur well going forward.

“It also expanded underwriting partnerships with the launch of the Blue Capital asset management platform in December last year. Besides focusing on enhancing shareholders’ value via, share buybacks and dividend hike, it also scores strongly with the ratings agencies. The company also benefits from tax exemptions in Bermuda. “

Separately, analysts at Barclays Capital raised their price target on shares of Montpelier Re Holdings from $24.00 to $26.00 in a research note to investors on Friday, February. They now have an “equal weight” rating on the stock.

Montpelier Re Holdings last posted its quarterly earnings results on Wednesday, April 24th. The company reported $1.18 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.85 by $0.33. During the same quarter in the previous year, the company posted $1.23 earnings per share. Analysts expect that Montpelier Re Holdin will post $2.66 EPS for the current fiscal year.

Montpelier Re Holdings Ltd., through its subsidiaries in Bermuda, the United States, the United Kingdom and Switzerland, provides insurance and reinsurance solutions to the global market.

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