Travelers Companies Inc (TRV
) was downgraded by analysts at Wells Fargo on Thursday, as they believe shares of the insurance provider will lose some steam going forward.
The analysts downgraded TRV from “Outperform” to “Market Perform” and see shares reaching a valuation range of $89-$92, down from the previous target range of $94-$98. This new price target range suggests a 6% to 10% upside to the stock’s Wednesday closing price of $83.73.
Furthermore, the analysts note that TRV is up 41% since they started recommending the stock in January 2012, versus a 32% gain for the S&P 500. “Travelers has been a leader in gaining commercial lines renewal rate increases utilizing a disciplined, segmented approach. Yet as TRV reaches rate adequacy across more of its segmentation bands, we think there is less profit leverage, which could slow multiple expansion going forward.”
Travelers shares were inactive during pre-market trading on Thursday. The stock is up 16.58% year-to-date.
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