BMO Capital Lifts Travelers (TRV) Target, Roth Capital Follows After Strong Q1 Results

The Travelers Companies, Inc. (NYSE:TRV) is included among the 10 Best Dow Stocks to Invest in Now.

BMO Capital Lifts Travelers (TRV) Target, Roth Capital Follows After Strong Q1 Results

On April 20, BMO Capital raised its price recommendation on The Travelers Companies, Inc. (NYSE:TRV) to $314 from $297. It reiterated an Outperform rating on the shares. The firm expects the company’s EPS revision trendline to move above consensus over the next 1–2 years. It pointed to more conservative reserve loss-ratio profit margin assumptions as a key driver, the analyst noted in a research report. BMO also sees potential upside to EPS from net investment income. It highlighted the spread between new money rates and existing bond yields. Buybacks could add support as overall growth begins to slow.

On April 20, Roth Capital raised its price goal on TRV to $345 from $320. It kept a Buy rating on the shares. The firm cited Q1 results that came in ahead of expectations. This was largely due to more favorable loss reserve development than it had modeled, according to the analyst. It also pointed out that underwriting performance remained strong. The company reported a combined ratio of 88.6% and an underlying combined ratio of 85.3%, which the firm described as solid.

The Travelers Companies, Inc. (NYSE:TRV) provides property and casualty insurance across auto, home, and business markets. Its operations are divided into Business Insurance, Bond & Specialty Insurance, and Personal Insurance segments.

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