Research Alert: CFRA Keeps Buy Opinion On Shares Of The Hartford Financial Services Group, Inc.
01:15 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We cut our 12-month target price by $2 to $58, or 10.5x our 2021 operating EPS estimate of $5.50 and 9.4x our 2022 operating EPS estimate of $6.15 versus the shares' five-year average forward multiple of 10.8x and a peer average of 9.6x. Q4 operating EPS of $1.76 versus $1.43 topped our EPS estimate and the consensus EPS forecast of $1.32 on 1.4% lower operating revenues, fractionally lower expenses and 1% fewer shares on buybacks. Full-year 2020 EPS of $5.78 versus $5.65 topped our $5.34 EPS estimate, the $5.34 consensus forecast on 1% higher revenues (versus our forecast of flat to 2% lower revenues) and margin gains despite a $208M asbestos charge and $152M excess pandemic-driven mortality claims. We see positive trends, like a 6% rise in commercial lines written premiums, driving 2021 operating revenues up by 4% to 6%. Currently trading at 9.2x our 2021 EPS estimate and yielding 2.7%, with a restructuring, $1.5B in buybacks, and better insurance pricing as catalysts, we view the shares as undervalued.