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- Citi on Wednesday initiated Everest Re (NYSE:RE) at Buy, given upside to consensus estimates from stronger pricing and tighter terms/conditions in reinsurance, as well as primary insurance opportunities.
- "We believe RE's primary business is well positioned for faster growth given leverage to attractive specialty lines and international expansion," said analyst Michael Ward.
- "We believe the growth opportunity in reinsurance is strong enough to warrant an interruption in the company’s shift towards more primary business," he added.
- Ward believes Everest Re's (RE) focus on insurance underwriting agility has reduced underwriting volatility and should offset sentiment concerns when the reinsurance pricing cycle eventually turns.
- Price target was set at $406, implying 15.1% potential upside to RE's last close.
- Shares of Everest Re (RE), which gained 6.4% YTD, rose 0.4% in morning trade on Wednesday.
- Citi's views are in line with bullish ratings from SA Quant and sell-side analysts.
- Now read - Morgan Stanley bullish on P&C insurers; Everest Re rated Overweight.