On Wednesday, Keefe, Bruyette & Woods adjusted the stock price target for Cincinnati Financial (NASDAQ:CINF) shares, increasing it to $150.00 from the previous target of $146.00. The firm has maintained an Outperform rating on the stock.
The adjustment follows Cincinnati Financial's second-quarter earnings report and subsequent conference call. The firm's analyst cites the quarter's earnings outperformance as a key reason for the adjustment. Additionally, the revised target price of $150.00 is set at 179% of the year-end 2024 estimated book value per share (BVPS).
The firm also revised its estimated earnings per share (EPS) for 2024, raising it to a range of $6.60 to $7.50, up from the initial estimate of $6.50 to $7.45. This update is based on the company's performance in the second quarter, which exceeded forecasts. The firm anticipates faster premium growth and lower core and catastrophe loss ratios for Cincinnati Financial. However, this is partly counterbalanced by expectations of lower reserve releases and higher expense ratios.
Looking beyond 2024, the firm has introduced its 2026 estimated EPS of $7.80 for Cincinnati Financial. The firm expects that the company's consistent premium and investment income growth, alongside its strong reserving practices, will contribute to EPS outperformance. This, in turn, is anticipated to support an increase in the stock's value over the next 12 months.
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