EU and US could reach trade deal this weekend - Reuters
Investing.com - Keefe, Bruyette & Woods (KBW) has reiterated its Outperform rating and $324.00 price target on Chubb Corporation (NYSE:CB) following the insurer’s second-quarter 2025 earnings report.
KBW analyst Meyer Shields maintained the rating on Wednesday, describing the market’s reaction to Chubb’s earnings as an overreaction and advising investors to buy the stock. The company has demonstrated solid performance with 7.72% revenue growth and offers a 1.44% dividend yield.
The research firm raised its earnings per share estimates for Chubb to $21.15 for 2025 and $26.00 for 2026, up from previous forecasts of $21.05 and $25.95 respectively, citing expectations for lower core and catastrophe loss ratios.
KBW also introduced an initial 2027 earnings per share estimate of $28.40 for the insurance company, based on an assumption of steadily softening pricing across all property and casualty insurance lines.
The firm’s $324 price target represents a multiple of 12.5 times KBW’s updated 2026 earnings per share estimate, with the analyst expecting Chubb’s solid organic and inorganic premium growth and continuing core underwriting margin expansion to drive outperformance over the next 12 months.
In other recent news, Chubb Limited reported strong financial results for the second quarter of 2025, with a record core operating earnings per share (EPS) of $6.14, representing a 14% increase compared to the previous year. The company also achieved a core operating income of $2.5 billion, marking a 13% rise. Despite these impressive figures, Goldman Sachs has lowered its price target for Chubb to $299 from $309, maintaining a Neutral rating. The adjustment comes after Chubb’s second-quarter results, with concerns over a greater-than-expected slowdown in North American Commercial pricing. Specifically, pricing fell to 4.5% in Q2 from 8.3% in the previous quarter. Goldman Sachs also adjusted its earnings per share estimates, keeping them stable for 2025 and 2026 but reducing the 2027 estimate by about 2%. These developments highlight both the growth achievements and the challenges Chubb faces in the current economic environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.