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Investing.com - Keefe, Bruyette & Woods raised its price target on Cincinnati Financial (NASDAQ:CINF) to $168.00 from $167.00 on Tuesday, while maintaining an Outperform rating on the insurance company’s shares.
The price target adjustment follows Cincinnati Financial’s second-quarter 2025 earnings report and conference call. KBW’s new target represents 180% of the firm’s estimated book value per share for year-end 2025.
KBW has also revised its earnings per share estimates for Cincinnati Financial upward, now projecting $5.90 for 2025 and $8.45 for 2026, compared to previous estimates of $5.55 and $8.20, respectively. The firm introduced an initial 2027 EPS estimate of $9.40.
The improved outlook incorporates Cincinnati Financial’s second-quarter outperformance relative to KBW’s estimates, with assumptions including lower catastrophe loss ratios, reduced expense ratios, and larger catastrophe reserve releases. These positive factors are partially offset by expectations of slower premium growth.
KBW expects Cincinnati Financial’s premium and investment income growth, combined with its "characteristically strong reserving," to sustain earnings per share outperformance that should boost the company’s shares over the next 12 months.
In other recent news, Cincinnati Financial Corporation announced its second-quarter 2025 earnings, which significantly surpassed analyst expectations. The company reported earnings per share of $1.97, exceeding the anticipated $1.41 by 39.72%. Additionally, revenue reached $3.25 billion, surpassing the projected $2.53 billion, resulting in a surprise of 28.46%. These results indicate strong performance and have attracted positive attention from investors. The positive earnings report highlights Cincinnati Financial’s ability to outperform market forecasts. Analysts and investors are closely monitoring these developments as they assess the company’s future potential. These recent figures reflect Cincinnati Financial’s solid operational execution during the quarter.
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