Courtesy of Benzinga.
On Wednesday, analysts at Keefe, Bruyette & Woods downgraded shares of XL Group plc (NYSE: XL) from Outperform to Market Perform and lowered the price target from $40 to $37.
Meyer Shields outlined concerns about the deal with Catlin Group:
1) Shields is not “convinced that specialty insurance market leadership translates into improved underwriting results, other than modest expense synergies that take time to emerge.”
2) The price for the deal seems too rich.
3) The deal could be modestly accretive to XL’s future EPS.
“Even though we view both XL and Catlin positively, we think that this deal will change investors' focus from legitimately improving Insurance segment results and aggressive share repurchases to acquisition- and integration-related concerns.”
Shares of XL Group closed Wednesday at $33.66, down 3.86 percent.
Latest Ratings for XL
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Dec 2014 | Keefe Bruyette & Woods | Downgrades | Outperform | Market Perform |
| Dec 2014 | JP Morgan | Initiates Coverage on | Underweight | |
| Oct 2014 | Citigroup | Maintains | Sell |
View More Analyst Ratings for XL
View the Latest Analyst Ratings
Posted-In: Keefe Bruyette & Woods Meyer ShieldsAnalyst Color Downgrades Price Target Analyst Ratings
