HIG Stock: $75 Target By Bank Of America

By Amit Chowdhry ● May 3, 2021
  • The shares of Hartford Financial Services Group Inc (NYSE: HIG) have received a $75 price target by Bank of America. These are the details.

The shares of Hartford Financial Services Group Inc (NYSE: HIG) have received a $75 price target by Bank of America. And BofA Securities analyst Joshua Sanker had reinstated a “Neutral” rating on the company shares.

Sanker decided on the “Neutral” rating after the Chubb CEO said that the company walked away from its attempt to buy the insurer. Sankar decided on the $75 target based on 85% of the 2022 peer P/E multiple of 13.5x.

Plus Sanker believes that Chubb’s offer for Hartford had reset HIG’s valuation range, narrowing the discount gap with its peers. Before the Chubb offer, the shares of P&C insurance peers were trading at 13x year-ahead earnings even though Hartford’s shares were trading at about 9x.

But Sanker does not see a path for HIG management’s 13% – 14% ROE guidance for next year and the year after. Instead, Shanker sees 12.7% ROE next year and 12.3% the year after.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.