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On Thursday, Chubb Corporation (NYSE:CB) saw its price target increased by Raymond (NSE:RYMD) James from $320.00 to $340.00, while the firm maintained a Strong Buy rating on the stock. The adjustment follows the firm’s analysis and positive outlook on the company’s potential to achieve significant core operating earnings growth. With a market capitalization of $114 billion and an "GREAT" overall financial health score according to InvestingPro, Chubb has demonstrated robust fundamentals.
Analyst Gregory Peters at Raymond James highlighted the rationale behind the maintained Strong Buy rating. Peters anticipates that Chubb will generate double-digit core operating earnings growth by 2026, underpinned by stable underlying results. The analyst’s confidence stems from the company’s solid performance, including 8.3% revenue growth in the last twelve months and promising future prospects.
The new price target reflects a valuation of 13.1 times Raymond James’ 2025 operating earnings per share (EPS) estimate for Chubb. This valuation is considered in relation to the stock’s five-year average multiple of 14 times and the property and casualty (P&C) industry peer average of 17.4 times.
Chubb’s stock valuation, as per Raymond James’ perspective, presents an attractive investment proposition when compared to its historical average and its peers within the P&C sector. The firm’s analysis suggests that Chubb’s shares are currently trading at a discount to both its own historical average and the broader industry average.
The upgrade in the price target by Raymond James signifies a positive sentiment towards Chubb’s stock, based on the firm’s expectations of the company’s earnings trajectory and its relative valuation in the market. The Strong Buy rating remains unchanged, indicating Raymond James’ continued endorsement of Chubb as a robust investment choice in the P&C insurance space.
In other recent news, Chubb Limited reported a 31% decrease in core operating income for the first quarter of 2025, reaching $1 billion. Despite this decline, the company experienced a 5.7% growth in total premiums in constant dollars. Chubb continues to invest heavily in technology, with annual spending set at $1.1-1.2 billion to enhance modernization and processing capabilities. The company also achieved an all-time high book value of $164 per share. Additionally, Chubb returned $751 million to shareholders through buybacks and dividends. The acquisition of Liberty Mutual’s business in Thailand and Vietnam contributed $275 million in premiums, indicating strategic expansion in the Asian market. Analysts at Raymond James have noted the company’s continued focus on middle market and small business opportunities. Chubb remains optimistic about achieving double-digit earnings and EPS growth, despite economic uncertainties like increased recession risks and inflation.
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