Chubb stock price target raised to $283 from $270 at BMO Capital

Investing.com - BMO Capital raised its price target on Chubb Corporation (NYSE:CB) to $283.00 from $270.00 on Thursday, while maintaining its Market Perform rating on the insurance giant’s stock. The company, currently trading at $279.45 with a market capitalization of $110 billion, maintains a GREAT financial health score according to InvestingPro analysis.

The price target increase reflects BMO’s updated 2026 earnings per share estimate, which was revised higher due to expected increases in investment income, a lower share count, and improved Life earnings. These positive factors were partially offset by projected higher losses in Chubb’s Corporate segment. The company has demonstrated solid fundamentals with 7.11% revenue growth and currently offers a 1.45% dividend yield.

BMO estimates Chubb’s adjusted return on equity at approximately 12.5% for both 2026 and 2027, which falls below Chubb’s own medium-term guidance of 14% or higher. The firm noted that including mark-to-market alternative investment gains would bring the ROE estimate to around 14.0%.

The new $283 price target is based on 1.5 times adjusted book value excluding accumulated other comprehensive income, representing a premium of approximately 15% to Chubb’s historical average.

BMO’s target also represents about 11.4 times their 2026 earnings per share estimate, which is approximately a 5% discount to Chubb’s historical average forward price-to-earnings ratio.

In other recent news, Chubb Limited reported a record-breaking third quarter for 2025, with core operating income reaching $3 billion, marking a 29% increase compared to the previous year. The company’s earnings per share (EPS) rose by 31% to $7.49. Total premiums also saw significant growth, increasing by 7.5%. Following these strong financial results, Keefe, Bruyette & Woods raised its price target for Chubb to $335, up from $333, while maintaining an Outperform rating. The research firm cited Chubb’s solid financial performance, which exceeded their previous expectations, as the reason for the price target adjustment. These developments highlight the company’s robust performance in the recent quarter.

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