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Investing.com - Goldman Sachs has raised its price target on Chubb Corporation (NYSE:CB) to $309.00 while maintaining a Neutral rating following the insurer’s third-quarter results. According to InvestingPro data, Chubb currently trades at $280.80 with a market capitalization of $110.75 billion, and analysis suggests the stock is currently undervalued. The company maintains a strong "GOOD" Financial Health Score of 3.0 out of 4.0.
The investment bank increased its 2026 and 2027 earnings per share estimates by 3% and 7% respectively, with a significant portion of the 2027 upside driven by an expected $10 billion increase in capital deployment over the next nine quarters. The company’s P/E ratio of 11.72 and revenue growth of 7.11% reflect its solid fundamentals. For deeper insights into Chubb’s valuation metrics and growth potential, check out the comprehensive research available on InvestingPro.
Goldman Sachs now projects Chubb will deploy approximately 90% of its operating earnings over the next two years, representing one of the highest capital return rates across its property and casualty coverage universe, and well above the company’s historical capital return of about 60% over the past decade.
The firm noted that Chubb could potentially deploy an additional $10 billion in capital if it chose to reduce its excess capital buffer to low-single-digit billions, which would drive approximately 5% higher 2027 earnings per share and a 1 percentage point higher Core ROE of about 14.5%.
Despite raising the price target, Goldman Sachs has weakened its view on forward growth, now expecting approximately 4% growth in 2026/2027 compared to the Street’s 5.5% projection, while its estimate for 2027 pre-tax underwriting income has deteriorated by about 2.5%.
In other recent news, Chubb Limited reported a record-breaking performance for the third quarter of 2025, with core operating income reaching $3 billion, marking a 29% increase from the previous year. The company’s earnings per share (EPS) rose by 31% to $7.49, alongside a 7.5% growth in total premiums across various segments. Following these impressive results, Keefe, Bruyette & Woods raised its price target for Chubb to $335, maintaining an Outperform rating, citing the solid financial performance that surpassed previous expectations. Similarly, BMO Capital increased its price target for Chubb to $283, reflecting an updated 2026 earnings per share estimate, driven by expected increases in investment income and improved Life earnings. Both firms maintained positive outlooks on Chubb’s future performance, highlighting the company’s strong earnings report as a key factor in their assessments. Despite the positive financial results and increased price targets, Chubb’s stock price remained stable in the immediate aftermath of the earnings release. These developments indicate a period of significant financial strength and investor confidence in Chubb’s ongoing performance.
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